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10 Money-Saving Tips for Small Businesses

Small business owners are typically flush with many of the resources they need to keep their businesses both afloat and thriving. They have ideas, they have ambition, and they have the kind of internal motivation that fuels the long hours needed to keep the business in motion. But if there’s one thing they never seem to have enough of, it’s money.

Growing a small business requires cash, but you need your small business to grow to generate more cash. It’s a cruel catch-22 that stymies most entrepreneurs at some point. But there are many ways to help make ends meet – and importantly, many of these money-saving tips don’t require you to cut back on critical goods or services that make operating your company easier.

The following are 10 of the best ways to lighten the financial load while still ensuring your company stays in growth mode.

10 Money-Saving Tips for Your Small Business

  1. Go Green: Believe it or not, becoming a little more environmentally friendly is also one of the best ways to lower your expenses on a regular basis. Doing things like investing in a smart or programmable thermostat, plugging all appliances into power strips so you can shut them off simultaneously at night, and adopting other energy-saving measures, such as reliable seals and double-pane windows will help reduce your utility bills. That’s hundreds of dollars of monthly savings, which is something you can actually plan around!
  2. Outsourcing: If you’re mapping out the growth of your company, carefully consider just how many full-time positions you’ll actually need, and how many tasks can be done more cost-effectively by outsourcing to independent contractors. This can help reduce paid hours to employees who really only contribute 20-30 hours per week on core tasks, and spend the rest of the time doing busy work so the company can justify the full-time aspect of their position.
  3. Haggle: There’s nothing saying you can’t try to re-negotiate for a sweeter deal, in a number of places. Whether it’s a customer that got in on the ground floor for an unfavorable (for you) price or a vendor that gets away with onerous prices, it’s worth trying to seek out new terms – especially as your company grows. If you’re expanding, everyone wants a taste of that increased business, and that can make a partner consider more equitable terms.
  4. Look for a New Bank: Switching banks can be a short-term hassle, but can produce long-term cost savings if you can get better deals on things such as checking services, card fees and other surcharges.
  5. Buy Big: Just like it often makes sense for families to pony up for that Costco membership and buy household staples in bulk, businesses can save money by purchasing many of their daily necessities in large quantities. For instance, if you know you go through a certain amount of paper every month, chances are you’ll save money buying a year’s worth than just what you need on a month-by-month basis.
  6. Go Paperless: Going digital is actually one of the most cost-efficient things you can do for your small business, though it definitely requires a little bit of effort. You need to identify the best equipment, tools and software for going paperless, then actually implement a plan – which involves a lot of conversion of your hard records. McManamon & Co. is a top resource for these kinds of conversions, offering consulting for every aspect of transitioning to a paperless office.
  7. Allow Telecommuting: If you’re a larger small business with a few dozen employees, you might want to consider making telecommuting a part of your corporate culture. Doing this allows businesses to cut down on office size and electricity costs, and has the added benefit of boosting employee morale and productivity lost to traditional commuting.
  8. Utilize Free Software: Many work productivity software suites have gone from one-time software buys to annual subscriptions, but there are plenty of free programs out there that can help you avoid these recurring costs. Google Docs, for example, can be used as a stand-in for Microsoft Word, and MailChimp can get you started with free email marketing campaigns.
  9. Pay Off Debt: Personal-focused, money-saving tips often have business applications, and this is another such example. The more cash you can put toward paying off debt now, the less you’ll end up paying in interest – ultimately making it a way to save money over the long-term.
  10. Talk to the Pros: There are literally dozens of other cost-saving tips out there, but they’re not all tailor-made for your company. How a cloud services company can become more cost-efficient is much different from how a bakery can reduce expenses. That’s why it pays to tap the business consulting experts at McManamon & Co., who can evaluate your entire business and help you implement strategic plans that will help you cut costs without cutting corners.

Don’t let a cash drain force your small business to circle the drain. Call McManamon & Co. at 440.892.9088 or contact us online so we can help you run a more cost-efficient shop.

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