Small businesses are by no means small when it comes to turning a profit or working with global clients, on the contrary. You have the capacity and the possibility to work with dozens of clients, hire dozens of employees, and turn a serious profit very quickly if you know how to run your business properly. However, while most owners tend to focus on increasing that profit over time, few devote enough of it to spotting drains in their budget that can actually help them invest in smarter growth strategies. These little drains on your funds are opportunities in disguise.
Reducing the costs of running a small business can make a huge difference down the line both for you and your employees. Some of those efforts can quickly turn into processes and systems that can completely alter your operations, transforming your business into a far more efficient one. Here are a few simple, frequently neglected ways you can reduce the costs of running your business.
Go digital whenever you can
Although most offices still use paper and print materials even when it’s not necessary, the use of paper, as well as printing equipment can be quite expensive for a small business. The misconception that those low costs of mailing, printing, and cartridge replacement are actually good for business comes from the lack of simple long-term planning. Even though a one-off printed contract can cost less than a dollar, cutting down on paper or even eliminating it entirely means that you can save thousands of dollars over time.
Simply put, it pays off to ditch paper and go digital for the long-term success of your business. With free and low-cost cloud storage options at your disposal, you can still preserve the security levels of your paperwork without actual paper. Not to mention the money you’ll save on storage space, filing cabinets, and office supplies, all of which are necessary for running an office based on paper.
Rethink your credit card
Credit cards are a blessing, as so many business owners would say, but only when you know how to choose the right ones. Reducing those most immediate costs by utilizing credit cards has been a major advantage for smaller companies looking to save up at every turn, but in terms of long-term savings, it’s best to look into your credit card options before you choose the first one on offer. There are various reputable credit card comparison platforms that give you the run-down of perks and benefits each of them offers, from discounts, cash back programs, to earning miles for frequent travel.
Based on how you run your company, you can select the most ideal card provider in order to cut your most frequent expenses and prevent overwhelming credit card debt from occurring. That way, you can preserve your day-to-day cash flow while you also prevent piling up debt over the course of years.
Embrace remote work
Offices are a wonderful place for teams to bond, collaborate, and build a company culture that will ultimately let them grow their loyalty towards your business. This is a place that brings your business to life and gives your employees a direct channel to connect with you and your values. Alas, the notion of telecommuting brings far more benefits than that, and not to mention the cost-effectiveness of replacing your office expansions with home-based work.
In addition to cutting your carbon emissions, reducing water and energy waste, you can also benefit from cutting down on overhead costs, utility bills, rent payments, and office equipment. Remote work allows you to also cut down on those everyday things most businesses take for granted such as kitchen and bathroom supplies, and the like. This is by far the most powerful way to expand your budget by letting your workers stay at home – if your line of work allows for such a change.
Use social media for marketing
Every single business needs to market its product or service, and the internet is precisely the place to find your place under the sun. Compared to traditional marketing channels that are still highly popular such as TV commercials, the low-cost strategies available online are incredibly effective, plus there are entirely free options that you can benefit from when you know how to implement them properly.
Enter: social networks. These omnipresent platforms are where your customers spend the majority of their time, interact with the brands they love and have the tendency to recommend (or not) the businesses they like. When you invest time and comparatively little money into running social media pages for your business, you can get exceptional exposure without a massive budget. Although it takes time to develop a social media presence, and paid ads and sponsored posts to come in handy, it’s up to you to use the infinite pool of options at your disposal to market your business there.
Reducing the costs of running a business should be one of those top priorities for many companies looking to grow. You can rely on the listed tips to preserve your budget and invest your hard-earned money into far more profitable segments of your company, so that you can focus on growth and success for years to come.
Raul is a B.Sc. in Innovative entrepreneurship and has a lot to say about innovations in all aspects of digital technology and online marketing. While he’s not enjoying travel, football and great food, you can find him on Technivorz.com