6 Realistic and Practical Money-Saving Tips and Ideas for Your Small Business
Saving just a small amount of money here and there can boost the bottom line of your small business. So if you're tired of hearing abstract advice, read on for straightforward, practical tips to help cut costs and maximise your profit margins.
1) Switch to PPC Advertising
Pay-per-click (or PPC) advertising is far more cost effective than traditional ad campaigns because it allows you to target a more precise audience, helping you to squeeze more out of your marketing budget. You also only pay for the clicks you receive rather than the impressions the ad gets, which helps maximise your ROI.
Outsourcing allows you to increase productivity whilst keeping employee costs low. For one thing, there are no pension contributions, sick leave or vacation time to worry about with freelancers or contractors. Furthermore, outsourcing more of your work allows you to convert fixed costs to variable costs, so you pay for the person-hours you need in accordance with the volume of work. This makes it easier to save money during quiet periods.
3) Negotiate with Vendors
A vendor's named price is only sometimes the final word on what you will pay them. It's always worth negotiating better prices because you may save yourself hundreds of pounds or dollars each month!
4) Seek Cloud Based Solutions
Cloud-based software can save you significant money by eliminating the need to purchase, maintain and upgrade expensive hardware. Cloud-based software is also easily scalable and allows you to maintain organisational agility, and it's a big space-saver, too.
5) Go Remote
Telecommuting can be a huge money saver for businesses. When employees work from home, businesses instantly save money on utility bills, office supplies and even hand soap and toilet paper. By encouraging some employees to go fully remote, businesses can also move to smaller office premises and thus save even more money on rent and furniture. Alternatively, you could allow all employees to work flexibly and introduce "hot desking" rather than having a designated desk for every employee. Research by Forbes found that by allowing staff to work remotely 50% of the time, companies saved an average of $11,000 per year per employee.
Furthermore, allowing remote working can let you get more out of your staff. There's a wealth of evidence to suggest that remote workers are more productive. For example, a study by Atlas Cloud found that remote workers put in an average of 26 extra days over the year, which accounts for a whole month's worth of added productivity at no additional cost to their employer.
6) Hire Based on Mindset, Not Experience
You can train an employee, but it's difficult to fix a negative mindset. Hiring intelligent, eager-to-learn graduates is a great way to attract talent to your company whilst paying an entry-level salary. Furthermore, you won't risk hiring employees who are set in their ways, and you will be able to train your staff to do things exactly as you like them with minimal resistance.
By employing these tips, you can cut costs and boost your bottom line without making huge sacrifices that could reduce your output or antagonise your staff. Saving money for your small business is about finding smart solutions rather than hacking away at your budget, and these tips will help you to do just that.