MONEY SAVING TIPS FOR SMALL BUSINESSES

The bottom line in every organization is that money keeps the wheels turning. It is important to know how to stretch an organization’s budget during challenging times because sometimes, pennypinching is the only way you make it through.

Saving money even when business is booming is good preparation for when you encounter challenging times.

Here are some areas in your business where you can save a little bit more cash.

Lean into telecommuting

What do we need offices for anyway? Office space rental is a substantial investment. And even if you already own the space, commercial property taxes can make a significant dent in your budget too. Telecommuting is a great way to cut down on these expenses. You can rent or buy a smaller space just so your key employees can come in if they want to and the rest can work from home.

As for your employees, there are some attractive tax incentives for working from home too, making telecommuting a win-win scenario.

Advertising intelligently

The most effective advertising platforms have migrated from the television to the internet and the sooner your marketing team embraces this, the better. Expensive 30-second TV spots no longer have the same efficacy as before and blogs and websites, which

are often either free to use or inexpensive, have become the place to be if you want eyeballs on your product offerings and brand. You can save some money simply by focusing more on these modern platforms.

Invest in software and automation

Good employees are the lifeblood of your business, so don’t waste them on menial work. Invest in software and automation tools that will alleviate the burden on your

employees so they can focus on more meaningful work.

Avoid hidden costs

From news outlet subscriptions to inefficient phone plans, there are costs that we just ignore mostly because they seem too small to matter. However, over the course of a year, these costs can add up to a significant sum.

The most important thing to do here is to assess the value you get from each expense. If you deem them necessary for the smooth conduct of business, then consider renegotiating. But, if the service is not as important to business operations, consider cutting it altogether.

Aim for sustainability

Office wastage can be a huge drain on resources. They usually start off as inconsequential but can easily balloon into million-dollar losses for your business year on year if you are unable to keep it in check. Try to make use of natural light as much as possible or turn off the airconditioning unit when it is not too hot. These are simple yet effective ways to bring costs down and revenues up.

Collect account receivables + get creative with payables

In times of crisis, everyone would be in cash-saving mode. This gives way to creativity. Some companies might give you a leeway on your payables. Others might accept services as payment. These should help you keep cash in your accounts for a longer period of time.

On the flip side, you can also try to collect on overdue invoices. Some of your clients may just have forgotten about the rendered services or goods delivered.