Five ways to save money in your small business in 2019
Every new year, we make resolutions: to get fit, stop smoking or just generally become a better version of ourselves. This year, why not resolve to save money, and make your small business even leaner?
As a small business owner, saving money is one of your most important tasks and one of your biggest challenges. Being able to save or cut corners on certain expenses ensures that you can invest funds in the areas of your business that are more profitable, or simply boost your bottom line.
“Lowering costs whenever possible is just as vital to the success of your business as driving sales – without a combination of both, you can find yourself in trouble,” says Julia Belkin with ThriveHive.
As such, it’s an important area to focus on in 2019. If you’re struggling to spend less in your business, use these five ideas to get on track and make this year more profitable than last.
1) Embrace bartering
If you’re not familiar with the concept of bartering, it’s the process of exchanging goods or services for the other business’s goods or services, as opposed to giving monetary compensation.
For example, if you run a personal training business, you could trade services with your hair stylist. They get free sessions and you get free haircuts. Of course, it’s important to consider the value to both and make sure it’s equal for everyone involved. If it is, however, this is a simple way to save money and still get what you need.
2) Change your health insurance
You may not realize the savings that you can achieve simply by adjusting your health insurance policies. For example, if you’re under 30, one option to consider is purchasing a catastrophic-only plan, suggests Health Markets. This will cover you in the event of a major illness or accident, yet costs considerably lower than a standard plan.
Health Markets also points out that the Bronze plan available through the Affordable Care Act (ACA) is another option that small business owners should consider when looking to save money. The ability to use subsidies can offset the out of pocket cost for these plans. While health insurance is stressful to figure out, it’s a good option for cutting back on spending.
3) Ditch the office
An office is a nice-to-have, but for many small businesses, not a need-to-have. Instead, allow employees to telecommute or work remote, saving thousands in overhead expenses.
What’s more, the benefits of allowing employees to work remotely extendfar beyond cost-cutting benefits. Recent studies show that employees who work remotely are more productive and tend to have lower turnover rates than their in-office counterparts.
If you’re worried about staying connected with employees, use the many tools at your disposal, many of which are much less expensive than paying for office space. For example, use Google’s free video chat for meetings and stay in touch with free Gmail Chat all day long.
4) Collaborate on marketing events
The power of collaboration can’t be underestimated. When it comes to saving money, find ways to collaborate on marketing events, increasing awareness and saving money. For example, teaming up with the business next door to host a “First Saturday” event allows you to split the cost of advertising and drive more customers.
Not to mention, you may be able to make the event even more appealing by sharing the costs of hosting catering or giving away door prizes. In the end, both businesses win—and save money. Attendees will also have a great time, allowing you to make a better first impression.
5) Buy used whenever possible
Start-upcosts can be overwhelming, especially for small businesses that need expensive equipment, like a restaurant or store. One way to cut costs is to invest in used equipment instead of buying brand new. Start by looking at other local businesses within your industry, suggests The Balance SMB:
“Look for established companies in the line of your business and ask them about the availability of the equipment that you need. They may give it to you at a lower price. Whether they sell it to you or just lease it, both ways are way cheaper compared to going for new equipment.”
Other office items, like printers, furniture andfixtures can all be purchased used from a local thrift store. If you have to be an office, this is a simple way to save.
Save money in your small business this year
There are many ways to save money and spend less in your business, you just have to think about every facet of your business. As a solopreneur, you can easily save with health insurance, while a small business with employees can ditch the office to see significant savings in overhead. Use these ideas to get out of the red and start moving toward a profitable business once and for all.
Photo by Christian Wiediger