Squirrels build food reserves for the winter; similarly every business should save money for a rainy day or simply a day when having some extra money can help. There are many ways a small business can save money. Here are some of them.
Here are some tips for saving your business money:
- One of the ways a small business can save money is by partnering with other businesses to take advantage of bulk buying discounts. Apart from savings, you can also get some good contacts and also ways to promote your company. Choosing a company that is not directly competing with your business can be wise since the aim here is to save money, not lose all your customers.
- Another way to use your contacts to save money is by taking advantage of trade associations. Business associations can mean that you can get discounts at certain member companies and other services including insurance and banking.
- Don’t use software that is too expensive if it is not really essential for your operations. There are many open source alternatives available that could work just as well. This will help you save on recurring software related expenses.
- Auditing all recurring bills every year can be a good way to cut down on anything you don’t actually use. These could be receipts for magazine subscriptions that no one is reading, or any other such expenses.
- Ensure your Business’ credit card or cards are all paid off in full every month to avoid unnecessary interest fees. Similarly credit cards have reward points that can be redeemed for various purposes. For example, if your work requires you to travel a lot then having an airline related credit card could be beneficial. Finding the most appropriate card for you can make a huge difference.
- Money in the bank means interest; transfer payments just before the due date and earn interest till the last possible day. However it is important to set up reminders to ensure you don’t miss out on payments and incur penalties.
- Similarly deposit your cheques as soon as you get them to earn as much as interest as you possibly can. Another method that small businesses can use to save money is bartering. Bartering is not just something that happened in ancient times. You can barter your services or products for other business related expenses. Online barter networks can help you connect with other companies. However, don’t forget that all types of taxes are still levied on bartered goods.
- Lastly – the most important technique to save money. This one actually goes without saying since most entrepreneurs do it anyway but negotiation is the most important money saving tip. Talk to the person or company selling you services or products, tell them you have competitive rates from their competition and prices are likely to come down.
