The world of business is one that revolves around money.
Passion, determination, and confidence are all crucial too, of course, but, without the cash to keep you going, you simply won’t be able to.
In fact, it’s lack of this vital resource that causes hundreds, if not thousands, of businesses to go under every single year. Unless you want to be next in that very long line, you need to stop making management mistakes and start finding ways to cut costs.
With that in mind, here are seven simple things that you can do to save money running your company.
1. Try Sharing An Office Space
The cost of a physical office space is a large one, which is why many small companies try to avoid it when possible. Instead of renting or buying somewhere to work, business owners work from home and ask that any employees do the same. If this isn’t possible for you, then you could try sharing a space with another small company. This does have its risks, of course, and there may be compromises to be made, but, if everyone can get along, then you can split your bills.
2. Search For Second-Hand Equipment
Once you have your office sorted, you need to fill it with the necessary equipment and furniture. As tempting as it can be to buy all of this stuff brand new, you should resist and stock up on second-hand pieces instead. These can be just as attractive and functional and work just as well, but they’ll cost you a fraction of what you would have had to pay. Check out eBay, Facebook Marketplace, second-hand stores, and local newspapers for some thrifty finds.
3. Look After Your Office Equipment
Buying these things cheaper can massively reduce your overheads, but your savings shouldn’t end there. To cut costs long term, you need to look after your equipment, keep it maintained, and call in PUWER experts regularly to conduct inspections. This should help to reduce breakdowns, thus saving you money on repairs and replacements, but it will also spare you from any legal trouble you might have faced if an employee or client hurt themselves due to faulty equipment.
4. Allow The Staff To Telecommute
Thanks to modern technology and the internet, it isn’t always necessary to head into work to get your job done. With that in mind, depending on your business, you should consider letting staff work from home, at least for a couple of days a week. This will massively reduce your expenses, as you’ll save on heating, lighting, and much more, but will also result in a happier, more productive workforce, creating a more efficient company overall.
5. Outsource Some Work To Freelancers
Hiring employees before you’re financially ready for them is a disastrous, yet incredibly common mistake among business owners. That being said, not being prepared for a permanent workforce doesn’t mean that you are able to do all of the work on your own. Instead of trying and failing to, you should outsource certain tasks to freelancers and agencies. This way, you still receive quality work on time, but you don’t have the cost of hiring and employing people full time.
6. Pay Every Bill On Time
When you run a business, you can’t afford to slack on your accounting. This will quickly lead to forgotten bills, which could result in some pretty nasty late and missed payment charges. Although you should avoid paying bills early, to keep your cash flow in check, you should never pay them late. If you’re ever struggling to get the money you need together, it’s always worth it to explain the situation to whoever you’re paying. They might let you off the fees just this once.
7. Always Negotiate A Better Deal
Paying your bills on time will also help to build better relationships with your vendors. This is important, as you may be able to use your bond to negotiate better deals later on down the line. You’ll find this is even easier if you tend to buy large quantities of products from this supplier. If you can’t seem to haggle a lower price, then you could try bartering instead. This way, you don’t have to spend any money, as you’ll simply be exchanging your goods for theirs.
Running a business will never be a cheap task, but that doesn’t mean that you can’t cut costs here and there. If you’re looking to keep your business expenses low, then consider the money-saving advice above.