Ways to Save Money in Your Small Business

Business is to earn and invest but not to spend.

For sure, you have spent so much of your time, effort and money establishing your business. And, for all people you are the one who mostly understand the operation of your business from the start-up until now.

You might be wondering on why “business is to earn and invest but not to spend”? Yes, mainly we establish our business to earn but before anything else, we risk and invest in starting the business, from planning, location, equipment, people and many more for the business operation. “Not to spend” is to avoid unnecessary expenses, and here are some ways to help you how to do that.

  1. Don’t get too excited with marketing tools. Marketing can really be a good investment that could boost up your sales, unfortunately, utilize only the ample marketing materials that will satisfy your business. It’s true that marketing tools are important but making money is more important. You can market your business by spreading the word to all of your entrepreneur friends and start your marketing alliance, make customers happy and serve them well – focus and talk to them. Let them feel that they are important and your product can really be helpful to them. In addition, generate business from referrals – they can be from your family, friends, satisfied customers, etc., and many marketing strategies that are financial wise that could save you up to 50%.
  2. Make use of internet tools wisely. Online is a wide-range of community that could be an excellent tool for finding good customers. But, why spend the extra in establishing your own website when you can have the online presence for free. We have several online social networks that will help you spread the word and could be sources of good customers – Facebook, Twitter, LinkeIn, Pinterest, and a lot more. Or else, start blogging your business with Google’s blogger.com, blog.com, WordPress, Tumblr, etc. Spread your business updates every day, every hour and many times you want without worries. You may start your blog and provide reviews about your products and services, success stories, current issues, upcoming products and services, and whatever issues regarding your business that may interest your customers and attract more of them.
  3. Location wise. You don’t need fancy space to run your business. The important thing is you have clean, organize and sufficient space to run all the necessary stuffs needed to operate well your business. Furthermore, make sure that your business is convenient and accessible, not just for your customers but for your own sake as well. Always remember that you are running your business to earn and save.
  4. Utilize used materials and equipment. Second-hand materials aren’t bad at all. You don’t need to get brand new materials always. If it can be recycled or someone offers you such materials, why not as long as it’s useful and with good condition – computer equipment, copier and office furniture. Auctions, thrift shop and classified ads are good sources of used equipment. Even office supplies can be recycled such as bond papers, folders, envelopes, etc. In addition, instead of spending the extra in buying forms at your local office supply store or spending time creating them yourself, you can find loads of free forms online that you can download, customize and print. Our best friend Google is always there for you anyway.
  5. Be secured, get your insurance. Insurance can be very helpful in times of catastrophe that are uncontrollable. Buy appropriate insurance while still early that protects your business and saves money in the long run. Visit the insurance company you’re most comfortable with and get details with their financial adviser for your better understanding of the service that could help you buy the insurance you needed.
  6. Hire people wisely. Rather than paying for employees who aren’t actually productive or paying all of their benefits, consider hiring temporary employees. Or, to save you from paying your people the extra, commission your people or you can even lease employee from a professional employer organization which saves you from substantial cash from employee benefits. Some business owners even make their children their workforce, why not! It didn’t just save them from employee benefits, more importantly from taxes.
  7. Negotiate properly. Everyone needs each other to be successful. You want a new client and they want new clients as well. You must always ask for discounts for new businesses – bank fees, insurance rates, marketing tools, suppliers, etc. They will be willing to give you discounts when they see you as a good partner or client and will be a solid client in the future. Some may ask you for suggestions, referrals and anything that could help their business as well. It’s a matter of give and take business matters.
  8. Keep an eye on financial temptation. You might have cash on hand and there are things that catch your attention because you’re thinking that you have cash and later you’ll be earning. I tell you, avoid such things. If you see stuffs that could help the business but could not actually generate income and will just fall into your expenditures, stop it! One thing more, don’t get carried away using credit cards. And if you happen to use them, use it wisely. In addition, if you’re near your suppliers pick up your order yourself-or perhaps have a friend or family member do it for you.
  9. Partner with other entrepreneurs. If you aren’t good in accounting, perhaps someone in your networks have accounting skills. What if that person isn’t good with marketing, managing, or something else you can offer to trade services? Don’t stress yourself and always ask for help. It’ll save your time, effort and money following some business that you and your partner can share.



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One Response to “Ways to Save Money in Your Small Business”

  1. […] Spend wisely. Ask yourself, do I really need these things I’m spending my money on? Think how much and how often you will need something before buying it. Buy only what you need, more importantly spend and invest on durable goods, in other words, these are items that does not quickly wear out, or more specifically one that yields out multi-tasks. […]

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