5 Ways Small Businesses can save Money

5 Ways Small Businesses can save Money

Operating a small business can be a challenging task.  A business needs to contribute to their respective industry among businesses with bottomless budgets.  By making a few tweaks to your customary activities or business responsibilities, your company will begin saving money which can be reinvested in the company.  If you want your business to be in the same circle as profitable, established companies, you will need to save money on unnecessary expenses that can be applied in areas contributing to the bottom line.

Join an association.

By having a membership with an association, your company can save money though discounts and partnerships offered specifically to that association.  Whether it is an industry-specific association or a local Chamber of Commerce grouping, your business will have access to discounts and partnerships and gain an increased exposure to new clients.  Having memberships in professional groups will also make your business seem more successful and trustworthy to prospective customers.  Even though you are spending money on a membership, the advantages far outweigh the costs.

Have high employee retention.

Happy employees equate to productive employees which will mean lower employee turnover.  Lower employee turnover means higher employee retention which equates to less money spent on training, searching for a new candidate, buyouts, and other related expenses.  Instead, focus on ways to retain and motivate your employees.  Praise your employees when they knock a project out of the park, and encourage them when they are faced with a daunting workload.  Host employee fun days, end the work day early, or simply bring in lunch for the entire office.  The acts can be small but will have a major impact on your employees.  Spending a small amount of money on employee retention is actually cost-saving because your business will spend less on employee turnover associated costs.

Use coupons.

Coupons are not just for soccer moms…companies should use them too.  Before you make any purchase, search online for a coupon or promo code.  From office supplies to replacing the breakroom refrigerator, check for a discount before you making any purchases.  You should have no shame in using coupons because sellers place them for a reason.  Saving money is always a positive, and by using coupons (essentially free money), you are freeing up money that can be used for business growth.

Eliminate extraneous expenses.

One of the easiest ways to save money is to cut back.  Simple changes (printing documents double-sided, turning off lights in unoccupied rooms, turning off computers at night, etc.) could have a major impact on your company’s overall budget.  If employees want expensive coffee for the breakroom, have coffee drinkers contribute to a coffee fun each month.  Before you print off a color document, ask yourself if you truly need a print copy or could manage by looking at the computer screen.  There is no need to be Scrooge when it comes to office supplies, but you and your employees should use supplies in moderation and when a legitimate need is present.

If your company has travel related expenses, they should be reduced.  Have employees share a room instead of booking 2.  Look at all different airline options before deciding on the best flight for your money.  If you are close to the location, rent a vehicle for the employee to use instead of flying.  Employees will only be sleeping at the hotel so check for hotels that are off of the main path because they will be cheaper.  Offer your employees a per diem instead of simply an expense account.

Cut down on meetings.

Employees should spend time being productive, not sitting in a meeting making a schedule for upcoming meetings.  If a meeting has no defined purpose, it has no need being held.  When employees spend time in meetings, they are not wasting time that could be used for work tasks.  Of course, some meetings are necessary, but before scheduling meetings, ask yourself what the purpose of the meeting is and if it is crucial for employees to attend.

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