Running a small business is one of the biggest challenges that an entrepreneur can face. There are so many different costs that come out of nowhere to make things difficult on a business owner. Here are a few tips that an entrepreneur should consider to help keep costs down.
1. Eliminate Unnecessary Facilities
Many businesses pay for unnecessary facilities just for the prestige factor that comes with them. Some small businesses would work just as well operating out of a storage unit or the business owner’s home than they would in a prime retail location. If a big chunk of a company’s business doesn’t come from walk-in clients, then there’s probably no point in overpaying for a facility.
In many cases, businesses can save money by outsourcing some of their business functions. For example, instead of paying for a full-time bookkeeper, outsource that to an outside firm.
3. Watch Processing Fees
When looking at merchant accounts, it’s important to look at credit card processing fees. These fees can quickly eat up the profits of a business. Look at all of the various ways that a merchant account can charge fees.
4. Look for Cheaper Suppliers
Another way that a business can keep costs down is to find a cheaper supplier. Instead of overpaying for inventory just because a relationship is in place with an existing supplier, it makes sense to shop around a little bit.
5. Save on Energy
Energy costs are a big chunk of most business’s budgets. Look at alternative forms of energy like solar to help offset an electric bill. Evaluate energy saving technologies as well.
6. Go Digital
Going digital with documents can help a business save on stationary costs. Instead of having to buy paper, everything can be stored digitally.
7. Shop Around For Insurance
Insurance costs can really add up for a small business. Between worker’s compensation, health insurance, and property insurance, it can get expensive. Shop around and get quotes from multiple insurers.
8. Split Costs
Split costs with other non-competing businesses when possible. For example, take out a joint ad with a neighboring business.
9. Advertise Online
Advertising online makes it possible for a business to zero in on a target market easier than with other mediums.
10. Use Free Software
Instead of paying expensive licensing fees for software, use free versions available online. For example, use Google Docs instead of Microsoft Word.