If you own a start-up business or have a small venture, your main priority would be to increase your profit and lessen your overhead costs. Here are ten of the most practical ways to do so.
Instead of hiring full-time staff, why don’t you try hiring freelancers for your needs? This way, you can save costs on training expenses, leave credits, insurance, and equipment.
When you hire freelancers for a particular project, they can work remotely and they usually charge lower as compared to in-house employees on full-time payroll.
Meanwhile, if you need help on tasks that require the person to be physically present, you can seek help from interns. Get in touch with the local universities and colleges in your area, and inform them that you’re accepting interns in your company. Most of them usually work free-of-charge in exchange for school credits, while some only ask for a minimal allowance or fee.
2. Manage your finances properly.
Managing your finances is not just about overseeing the comings and goings of your money. It’s about staying on top of your payables and making sure that they are settled on time. If you fail to do so, you can pay a substantial amount in penalties and that will add up on top of your overhead cost.
To make sure that you don’t overlook due dates, see if automatic payments are allowed. If not, set an alarm for each payable so that you can avoid unnecessarily spending for penalties.
3. Avoid buying in bulk.
Yes, you read that right. Although buying in bulk is cheaper than buying by piece, it is still not advisable for small businesses. If you’re running a firm with five people as in-house staff, do you think buying 10 boxes of pens is necessary? Chances are, they will just dry up before you can use them.
When running a small business, it’s important that you only buy stuff that you will actually use. What’s the point of “saving” on buying bulk if half of those items will only end up collecting dust?
4. Ask for discounts.
Well, you can’t generally ask discounts for a box of pens or a ream of paper by simply mentioning that you own a small business, but you can get a price cut for big items such as office equipment. So when you go shopping, let the store owner know that you’re running a small business, because chances are, they will offer you discounts for big-ticket items such as printers, tables, and computers.
5. Take advantage of free tools.
Thanks to the Internet, free tools are readily available for small business owners like you.
You can start with using social media to advertise your business. Instead of spending on print, radio or TV ads, why not set-up a Facebook page for your brand? It’s free and has the potential to reach millions with just a click.
More so, it pays to check out free money management tools online. Shopventory listed four free tools that can help organize and track the financial side of your business.
6. Re-dye your textile.
If you own a small inn, hotel, villa, restaurant, or laundry shop, you can just dye your linens instead of buying new ones. This will not just elevate their overall look, but will also help you save a lot of money. This is perfect for re-branding too.
Many businesses are embracing the dyeing trend these days, because it’s cost-effective and easy to do. If you want to know more about dyeing and products that can help you put new color to your business, please get in touch with our team today.
7. Limit your use of paper.
Cut down on your expenses through limiting your use of paper. Take advantage of tools like Google Docs, DropBox, and Amazon Cloud Drive, so that you can lessen your paper and printing expenses. Sending online invoices to clients helps reduce your operational costs too.
8. Use energy-efficient equipment.
Save on your monthly electricity bill through energy-efficient equipment such as lights and other appliances. They may cost more upfront, but the savings you will get from using them will be worth so much more overtime.
9. Comparison-shop for insurance needs.
As a small business owner, certain insurance policies such as general liability insurance, property insurance, and business owner’s policy may come in handy for you.
Regardless of what type of insurance you’re looking for, always do comparison-shopping. Insurance companies have varying ways of pricing their policies, and you need to make sure that your not overpaying for insurance that you can actually get for a lower price.
Aside from the cost, also look into the company’s background, performance and the fine print written on the policy. Make sure it matches your needs, because a policy will all be for nothing if you can’t make a claim on it in the future.
10. Set guidelines on employee spending.
If you issue petty cash and credit cards for your employees, make sure that you set boundaries on how they use them. Make it clear that company fund should be used for work-related purposes only. If you see any discrepancy on their spending, bring it to their attention immediately.
When you think about it, minimizing your overhead is not as hard as you think. All it takes is finding the areas that you can cut back on without compromising the quality of your brand. If you know other money-saving tips that are not on this list, please share it with us in the comments.