When you are running a business, every penny counts, and you need to monitor your spending at every step. Here are some tips of ways that you can save money in your business, thus maximizing your profits and saving you cash for a rainy day.
Repair, not replace: Take the time and effort to fix broken things rather than just throwing them away and replacing them. For example, electronic devices can last years and years with the right care. You do not need to buy the latest models and constantly upgrade your devices to the newest version. Get a quote for your electronic parts here to understand how you can use your money more efficiently.
Choose energy-conscious vendors: Vendors can help you save money in more ways than just sales and price cuts. Work with green vendors to save money; for example, if your vendor’s provider derives their energy from clean, green power such as wind energy, then they will pass these savings on to clients like you.
Use independent contractors: Many small businesses find themselves limited when they decide not to hire, but there is an alternative. Rather than hiring full-time employees, hire independent contractors instead. Enlisting the help of freelancers helps free up time for your workers to focus on other tasks and help to grow the company. A major benefit of using freelance workers is that you will only have to pay them for their work, and you can just take them on temporarily whilst you need them.
Replace employee benefits with “perks”: Sometimes, free perks are better than expensive ones. Offer to support workers’ pet projects for a discounted rate or even for free. You could provide free media relations services to help build their personal brands or have an in-house travel agency to service both clients and employees. Shared Spotify or Netflix accounts would also be a popular perk for many of your workers.
Negotiate: You need to save money for yourself, but also so you can leverage those savings for your clients and keep your prices competitive. A great bartering process that companies can use is by exchanging one service for another rather than paying each other in cash – it is important that you check with your tax advisor about how to report bartered goods and services to the IRS to keep things running above board.
Take advantage of early payment discounts: Some suppliers will reward you for paying early — take advantage of those 2/10 discounts.
Check existing vendors for a partner page: Often, vendors will offer generous discounts to their partners. Check their web page or simply ask your vendor for a partner’s discount.
Recycle printer and toner cartridges: Ink cartridges cost on average $50; recycling is a great cost-saving option. In addition, recycled ink cartridges are cheaper, and many retailers have programs that offer you additional rewards for using recycled cartridges.