Business owner uses calculator to help evaluate business costs (Getty)
When you run a small business, you must be aware of your costs at all times. It can sometimes be challenging to create and implement processes that will help you save money. But these changes don't have to take a lot of time or even much effort. In many cases, it's simply a matter of making smarter decisions that will allow you to keep your costs low and maximize your profit margins.
That's where this guide comes in. If you're running a small business and money is tight, then you'll benefit from these five tips designed to save you money without impacting the efficiency of your business.
Create and stick to a business budget
Planning your budget is the first thing any responsible business owner should do. Sensible budgeting is intrinsically linked with reduced costs. It is impossible to make informed financial decisions without an accurate idea of the money going out and coming into your business every month. A business budget that can be referenced daily is an extremely powerful tool for reducing the costs associated with running your business. Without a business budget, you could easily find yourself going out of business. It is crucial that you can make enough cash flow and profit from your venture so that you can cover all of the expenses associated with it.
Reevaluate your energy provider
If you’re operating in one of the 15 U.S. states with deregulated energy, you may be able to shop around for a gas and/or electric service provider. Over the past few years, comparison websites have emerged to help consumers evaluate their options. Small businesses like yours can log on to one of these sites and take a look at the prices you could be paying. The savings may not seem substantial at first glance, but they will certainly add up in the long run. These sites allow you to switch suppliers with relative ease.
Barter your way to profit
Bartering is the act of exchanging your goods or services for goods and services you need, without any actual cash changing hands. While it may seem like an old-fashioned method of getting by, many small businesses rely on bartering. When a successful bartering agreement is reached, you will find that your business costs are reduced as you have been able to avoid the initial outlay of funds while still managing to fill an immediate need. It's a win-win situation for both parties involved. And if you need assistance with forging a barter-based relationship, getting accredited with BBB is an effective way of showing potential trade partners your business is trustworthy.
Review cell phone costs
If you use cell phones for your business, you'll more than likely be able to cut a better deal if you contact your current service provider and tell them that you're thinking of switching companies. You might also have luck by contacting another provider and listing your requirements. It's easy to stay with your current provider and continue to pay your current rate, but a couple of calls could result in significant savings. A new contract will probably see you receive more call units and upgraded phones, which could save your business hundreds in the long run.
Market your business online
Online marketing is often an inexpensive and easy-to-set-up tool for reaching more customers. You can start a business blog for free or prioritize social media accounts to advertise your business on those platforms. Online marketing is something that every business, regardless of the size, should be doing because of its potential to gain quick responses with minimal cost and effort.
For more information
For more information to help your small business, check out the BBB business news feed and the BizHQ.
BBB Great West + Pacific contributed this article.