Running a small business is tough, especially when trying to balance the books. If you want to thrive, you need to work really hard to see where savings can be made as well as finding new custom. If you’re struggling to make a business profitable, take a look at our top tips for keeping business costs down.
Do you need a commercial space?
Lots of small businesses are run from home, and this is a great way to save on expensive rent and other overheads. For example, instead of having a shop can you sell your products online and still make a profit? Do you really need an office for just one or two workers? Perhaps your staff can work from home too? You’ll be amazed how much cash could be saved by not operating a workspace.
Choose business partners wisely
Even small businesses will rely on companies or service providers for certain aspects of the business. It could be a website hosting company, a tech support organisation or an accountant. Make sure you shop around to get the best deal, and always ask if they provide any discounts for start-ups or SMEs. Finding the best value is essential for business services, otherwise you could find that most of your income is soon spent on these invoices.
Only travel when essential
Do you find yourself travelling long distance for client or supplier meetings? Is it possible that these meetings could be conducted using video conferencing instead? You’ll save the money spent on train fares or business miles, and also have more time to spend on important tasks for the rest of the day.
Don’t pay until you have to
It’s easy to fall into the trap, especially with online services such as digital marketing and website designing, of paying top dollar for the service. You can actually do a lot of this stuff yourself using free software. Always try the free stuff first before you decide to buy a service or package! For example utilise free marketing on social media, get friends and family involved, and try and build your own website on a free template. It’s all easily done if you have the time rather than the cash.
Hire an intern
If you could do with an extra pair of hands but can’t afford the wages, you could always hire an intern or offer a work placement. If you get in touch with local colleges and universities, you may find there are plenty of people willing to work for free to get experience on their CV.
Shop around and be savvy when it comes to cutting business costs – you’ll be surprised how much you could save over the year.