If you’re a business owner or a budding business owner, one of the smartest things you’ll set out to do is save as much money as possible when just starting out, or if even you’re looking to grow. Of course, sometimes, looking to save as much money as possible in your business can hinder you more than help you. You do have to spend money to make money when the time is right!
It’s important to know where to save money, so you can put it back into areas of your business that really need work, and into your emergency fund so that you have peace of mind whatever happens. Below, you’ll find 13 smart ways you can save a fortune in business. Take a look and see what you think!
- Get Sponsors For Events
When running events for your business, you can draw in new customers and you should find previous customers come back to you too. Many businesses rely on regular events to expand their customer base. However, going to lots of these can prove to be extremely expensive. If you can get sponsors for events, you’ll lessen the cost, perhaps even significantly.
- Hire Inexperienced People
Hiring people with no experience doesn’t necessarily mean hiring people that haven’t got a clue about your business and don’t fit in with your company culture. It means you’re giving graduates a chance – and you’re also going to end up saving money. The person you hire won’t likely be in any bad habits picked up from previous positions, and you’ll be able to train them up the way you want them with little stress. A graduate will likely be up to date on the latest technology, as well as eager to learn and do their best. Hiring inexperienced people could really be the best way forward for your business.
It’s juvenile to think that hiring somebody with a ton of experience is always going to be better for your business. Be open to finding a better fitting candidate that has little to no experience. They should fit in with your company culture, too, so bear that in mind. If you like to think that your company culture is more diverse in comparison to others, somebody with plenty of industry experience might have a hard time fitting in.
- Know When To Outsource
You’re going to need employees if you want to grow and become successful, there’s no doubt about that. However, hiring employees can mean spending more on all kinds of things, from salaries, to space, to the insurance cover you have. By outsourcing, you’ll still have certain tasks done professionally, but you’ll save money and won’t have to commit to as much when you do so.
Make sure you think long and hard about what you definitely need employees for full time, and what you may only need people for occasionally. Look at outsourcing and freelancers as a way to get the job done. Although this might cost you money initially, it’ll save you more when you consider the money saved in things like space and insurance. Plus, you don’t have another mouth to feed permanently!
- Always Negotiate With Vendors
You may have been paying your vendors a similar amount for some time, but that doesn’t mean you have to pay them the same amount forever. Negotiating lower prices with your vendor could be possible if you’ve already proven that you have been a loyal customer to them. They want to stay in business too, so it’s unlikely they will be willing to lose you to a competitor. You could potentially save hundreds off your operating costs by doing this!
- Find Where You Can Cut Employee Expenses
You may need to rethink your expenditure if you’re going to save money. For example, treating your staff to lunch from time to time can be great, but buying them lunch all the time can cost you more than it’s worth. Try making sure your employees are happy and engaged in other ways, such as knowing how to praise them for hard work.
Now, you probably shouldn’t cut expenses in a way that is going to make many feel disgruntled. For example, you should still provide water, tea, and coffee, and make sure you provide them with the essentials to complete their jobs to a high standard.
- Make The Most Of Telecommuting
Telecommuting won’t always be possible for employees within your business, but it can be something that saves you an absolute fortune. By keeping things as remote and virtual as you can, you can save a ton of money on your operating costs. You’ll keep your overhead costs to a minimum this way. If you can’t do this with everything, at least find a way to reduce certain telecommuting costs.
- Become A Greener Business
Going green won’t just save you money in the long run, it’s a great PR move too. More and more people are looking to work with green businesses, as they know how unsustainable certain businesses can be and don’t want to contribute to the damage. You can become greener in numerous ways, from keeping equipment on a power strip and turning it off when not in use, to replacing your existing printer with one that prints on both sides of the paper. You can also switch your light bulbs, buy recycled paper, and make it a rule that everybody must recycle in the office. You could even give incentives to employees if they choose to carshare or take public transport, which is better than everybody driving into the office separately.
- Cut Down On Office Maintenance
Reviewing ongoing maintenance costs can help you to cut back. It’s a good idea to have a cleaning service come into the office occasionally, as your employees should be working, not giving the place a deep clean. However, daily cleaning is often unnecessary – your employees can empty their own bins. If you reduce the frequency of things like this, you’ll be able to save a lot of money. Just make sure you don’t reduce this so much that you’re actually forcing employees to take too much time away from their core tasks. They should still have plenty of time and energy to get the job done!
- Consider Hiring Interns
Hiring interns from local schools can be a huge help if you’re looking to do things like improve your social media presence. They can blog, tweet, and post on social media to improve your SEO and help you to expand your reach. They can take care of many other tasks, too. This will cut back on the expense of having a full time employee do it for you. If they work hard, they may even make a good hire for the future.
- Know Exactly Who Your Customer Is
When you know exactly who your customer is, you can target your marketing efforts specifically towards them. This will help you to get better results, and you’ll avoid targeting people who have little interest in what you have to offer. You should know what your customers like, how they use the internet, what problems they have, their needs, what they will spend, and more, and you’ll effectively be able to come up with a plan to target them. You’ll save money initially, as well as make more money in the long run.
- Purchase Used Equipment Rather Than Buying New
Many entrepreneurs make this mistake; buying equipment new. You don’t need to do this, especially when you’re just starting out. Assuming you only have a set amount of cash to play around with, you should consider buying used equipment. New equipment is very costly.
Look for established companies who sell used equipment and see if they can help you to find the pieces you need. You can either buy it second hand or lease it, either way, you’ll save money on the initial costs of starting your business. You could also look for auction information online to see if you can find what you’re looking for there. There are all kinds of ways you can save a substantial amount of money on your business, so don’t automatically assume you have to go out and purchase new equipment.
12. Bargain With Everybody
Negotiating with everybody, such as vendors, will allow you to save big bucks. Negotiate when you’re looking to buy equipment or hire out a service. See if you can exchange something of your own for something another company can offer you too. It won’t always get you the results you’re after, but it’s definitely worth a try.
13. Volunteer To Speak At Industry Events
If you consider yourself an expert in a certain field, you should probably try to add value to the lives of others by sharing it at industry events. Why not volunteer to speak at these events or conferences? This is a brilliant way to gain some free exposure for your personal brand and your business, and you’ll be able to network while you’re here too!