While cutting business costs can be the best advice one can give to a cash-strapped entrepreneur, it can cause small business owners already operating on a budget to break out into a cold sweat. After all, it might seem impossible to cut costs when there is nothing left to scale back on!
However, the good news is that cutting business-related expenditures is absolutely possible, even when you’ve tried everything you could to boost cash flow and save money.
If you’re a small business owner looking to reduce the expenses involved in running your business without compromising on quality, you’ve come to the right place. Here are 9 smart and worry-free ways to cut costs related to promotions, overhead expenditures, and taxes!
Promoting Your Business
1. Make Your Presence Felt Online
Set up a good website– if you don’t want to spend on a custom design, log onto sites offering tools and templates to create basic websites. List your business online for free on search engine local directories and create business accounts on social networking sites. Hold online contests, post infographics, and share instructional videos to get the buzz going!
2. Cash in on Point-Of-Purchase Opportunities
Use point-of-purchase opportunities to advertise your other services or products by giving away samples. Include coupons, promotional flyers, and newsletters with purchases or with invoices and other mails or e-mails. This can save postage costs and customers are sure to take notice!
3. Split Advertising Costs
Get in touch with businesses selling complementary goods or services and talk to them about sharing mailing lists and advertising costs. Also, consider organizing a sidewalk sale with other businesses in your neighborhood.
Office Overhead Expenditures
4. Buy Wisely
Buying used computer equipment and office furniture can help you save a lot; make sure you don’t end up spending more on repairs though. Compare prices quoted by different vendors before buying, and do check out the rates online too.
A good option is to lease equipment. This way, you get to conserve cash and save on upgrades, maintenance, and repairs.
Buying items like stationery in bulk can help you get good discounts. Avoid spending money on magazine subscriptions for the reception area; avail magazine freebies instead!
5. Go Paperless
Printers and printer ink can increase overhead costs. Going paperless not only decreases printing costs, but also minimizes storage costs and improves overall efficiency.
If you must have printers in your office, share them between employees. Additionally, consider using recycled printer cartridges or buying them in bulk.
6. Think before Hiring
Hiring virtual staff and freelancers temporarily to handle surges in the workflow can help save overhead costs. Also, you won’t have to pay freelancers when business gets slow. Do consider using independent contractors or leasing-in employees.
When hiring employees, turning to recruitment firms can be costly. Using your own network and that of friends, family members, and existing employees might prove to be useful!
To cut costs on employee salaries, don’t over-emphasize on hiring experienced individuals; instead, hire interns or capable individuals at entry-level positions and salaries. Experienced employees may be more competent and required for certain positions, but don’t forget that freshers can be more eager to perform well!
Further to this, allowing employees to telecommute or work less hours or days per week can help bring down utility bills.
7. Pay on Time
The best way to save on taxes is paying them on time to avoid penalties. Since penalties are cumulative, the longer you take to file returns and pay taxes, the more money you’ll be wasting.
Set up a system to track income and expenses and ensure that all receipts and other proofs of expenditures are categorized and filed away.
8. Add to Employee Benefits
Giving employees a raise in salaries means having them pay increased taxes plus paying the employer share yourself. To eliminate income tax, unemployment tax, and Medicare, increase the company’s contribution to employee health insurance costs.
9. Spend on Accounting
As a small business owner, you might have less time and money to spend on accounting. Neglecting bookkeeping and failing to document sales and expenditures can make audits a nightmare.
To sail through audits, maintain records meticulously and be sure to collect proof of filing returns and payment clearance. Having a dedicated finance and accounting professional in-house or outsourcing bookkeeping services can help you avoid wasting money in the form of fines, penalties, and back taxes!
When operating a small business, there’s only so much you can scale back on without affecting employee morale. While exploring all cost cutting options is great, don’t make rash decisions that will make your employees feel unsure about the workplace and worry about where your business is heading.
With the tips given here, you now know some smart ways that will help you cut business-related expenses. So get started on these tips and put them into action to improve your company’s financial health!