Wednesday, 10 October 2012

Clever Ways For Small Business Owners To Save Money

Business Expenses
Starting a small business, no matter how minuscule or inflated your budget, is a frightening prospect. As the nation continues to struggle, it's more important than ever for home-grown entrepreneurs to press on, and create a new definition of the "American Dream."

If you're considering starting your own small business, or are the current proprietor of little coffee shop or bookstore, it's more important than ever to find a few clever ways to save a little money. Here are a few ideas to help you climb back into the black:


Watch the Marketing Material Budget

Many new business owners fall into the trap of spending a small fortune, and a large chunk of their time, determining their business logo, purchasing embossed letterhead or printing up thousands of flashy business cards. Although this is one of the more enjoyable aspects of starting this exciting new journey, it can also be a massive waste of your time and precious resources, especially if the materials become obsolete as your business expands and evolves. Instead, work with a tech-savvy friend or family member to create a simple logo and print up business cards with your home computer to save money.


Use Creative Advertising Techniques

It's simple to outsource your advertising needs to a reputable PR firm, but this is probably an extraneous expense your limited budget cannot afford. Instead of going the traditional route, find some clever, and cheap, ways to advertise your business. For instance, nothing creates a positive buzz than word-of-mouth, so ask your friends and family members to encourage potential clients to patronize your establishment. Purchase inexpensive domain names, such as those abandoned by another company, and save money by designing the web page yourself.


Ditch the Paper

Several small business owners waste thousands each year on the storage and printing costs associated with simply using paper to retain documents. Instead, consider performing all necessary transactions, and storing any integral documents, electronically. Not only does this minimize your carbon footprint, it can potentially save you a large chunk of money that can either be put away or reinvested into your company.


Go Shopping for a New Bank

Recent regulatory changes have many banks scrambling to make up for lost revenue by tacking on unnecessary, and many times hidden, fees onto even the most basic services. If this is your dilemma, don't hesitate to shop around for a new bank. Ask candidates upfront if they offer discounted services for small business owners and when in doubt, look to online-only direct bank, as these institutions generally have lower operating costs and pass the savings onto their clients.


Watch Employee Spending

As your business expands, you'll inevitably need more employees. If there is travelling or other employer-purchased needs, you might even provide your employees with company credit cards or spending accounts. The days pass, and as you become more entrenched in the day-to-day operations of the business, you neglect to watch your employees' spending habits closely; that is- until you get the bill. Avoid unnecessary overages by keeping a watchful eye on your employee's spending habits. Ask for a receipt after each purchase or transaction, and make it clear that an unnecessary spending will come directly from his or her paycheck.


Become a DIY Expert

It's unavoidable that you'll encounter bumps in the road or come up against issue that you or your employees cannot tackle. Instead of calling your trusted outside IT professional or even hiring a plumber to fix a leaky sink in your restaurant's kitchen; don't hesitate to tackle these issues yourself. Not only will you save money, you'll also learn a valuable new skill along the way. Just make sure the task isn't too far beyond your area of expertise or you could wind up doing more harm than good.

Finally, not only is it critical to hire a merchant services company to accept transaction payment, it's also in many cases an important decision that some small business owners either gloss over or don't perform their due diligence by seeking the best rates and establishment possible.


About The Author: Larissa Sampson is both an IT specialist and small business entrepreneur. She advises reading the WorldPay blog for more information on small business frugality.

Did you find this article helpful? Please let Larissa and myself know by leaving us your valued comments below.


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3 comments:

  1. Great tips. I agree by moving on with the new technology reduces many unwanted expenses and increases the productivity and profitability of the business.

    ReplyDelete
  2. There are always new ways to save money and cut overhead, that's what we small business owners live for. Thanks for the great advice. Some of these are new to me and I'm going to try them out.

    ReplyDelete
  3. These are some great tips to cutting costs and overhead. I was even aware of a couple of them, but I will be using them. Thank you!

    ReplyDelete

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