Considering how long it takes the average small business to become successful, saving money is a big priority for many companies. Many small business owners invest their own capital and borrow even more, making financial planning an essential element for successful business practices. If you’re looking for ways to save even more cash for your company, here are some ideas to get you started.
1. Shipping
Shipping rates can vary wildly across companies depending on size, weight, and destination. Miscalculating any of these factors can cause your prices to go up, and it might even take a while to realize your mistakes. Finding shipping solutions won’t just save you money, but also time. This allows you to streamline your production, packing, and shipping processes, especially if you can arrange for regular pickup. Many companies factor shipping into their prices, so when you get a good price for shipping, you can pass those savings on to your customers. If you’re in a competitive industry, this could be what makes your customers choose you over a competitor.
2. Utilities
Utilities are necessary for running a business, but that doesn’t mean exorbitant prices are. In some locations, businesses are stuck with only one option for necessities like energy and water, but if you are lucky enough to shop around, do it. Not only are you likely to find attractive prices elsewhere, but your current company will likely negotiate with you on price simply to keep you as a customer. You can also bundle things like phone and internet services to save even more money. Just make sure you set a reminder to call the company again once those deals run out, or else you could end up with higher prices again once those specials end.
3. New Technology
There are many surprising ways new technology can help a small business save money. For example, if you’re using an old printer that’s always jamming or breaking, you’re losing time and potential clients or customers by dealing with it. New technology is an investment upfront, but it works faster and tends to solve all sorts of problems with new automation software. Simply switching to a paperless office can reduce clutter and paper costs. You won’t have to store it or send it either. The upgrades don’t have to be industry specific, especially when things like security cameras or full security systems can help stop theft and vandalism before they happen.
4. Suppliers
If you need to buy a product and have been purchasing in small amounts, you could be throwing away a lot of cash. As soon as you’re able, buy in larger quantities. Not only will individual units cost less, but you’ll also have plenty on hand if demand ever increases unexpectedly. You might need to find some extra storage space, but the lower prices for larger quantities will still end up saving you money in the long run. Plus, when you have a good relationship with your suppliers, they’re more likely to give you a discount or let you know about any new products.
5. Buy Used or Lease
Buying new equipment can be pricey and out of budget for many small businesses. Buying used equipment can help you start out for a lower price, but you should be careful when buying. Make sure the seller is reputable and test the equipment first if you can. Many manufacturers sell refurbished equipment that is often like new, which could be another good option. Leasing equipment is less expensive, with the added upside of letting someone else handle all of the repairs and maintenance so you can spend your valuable time elsewhere. As long as the leasing company responds quickly, you won’t have to deal with pausing your business operations for too long.
Running a small business takes a lot of resources, but finding ways to cut back can be exhausting. By trying out a few of these tips over time, you can gradually see big savings that end up back in your pocket.
