Sometimes it’s very challenging to grow a business while also saving your small business money. The more business you’re able to get, the more resources you mostly likely need to satisfy your clients.
But in order to increase profits, you have to learn how to grow revenue while keeping your expenses low.
Addiction to Spending
In case you haven’t noticed, we have a spending problem. When you compare the average American’s daily spending and consumption habits against other countries, it becomes apparent that we are way in the red.
You don’t have to sacrifice growth when saving your small business money.
The amount we spend as a country is truly extreme. We don’t understand the importance of saving. When we make more money, we assume that we should also be spending more money.
In business, this same approach is very risky. If you assume that your expenses must scale proportionally to your revenues, you’re going to end up unprofitable or out of business.
Successful and thriving businesses are built when companies are able to slash expenses while increasing revenues. While the concept may seem obvious, it’s amazing to watch companies disregard this idea as they experience significant growth for the first time.
Quick Tips for Cutting Small Business Costs
In order to help you do just this, let’s take a look at some practical tips that will allow you to curb spending quickly and efficiently, without negatively impacting your growing revenues.
1. Hire Interns
Internships are beneficial for everyone. Despite this, most businesses never consider hiring interns.
While there are certainly cases in which interns aren’t right for a business, the reality is that establishing internships is extremely profitable on many fronts.
First off, interns command much less salary than full-time employees. Secondly, a well-run internship program actually reduces your hiring costs. The reason is that a positive intern experience often encourages that individual to apply for a full-time position down the road with little or no effort on your part.
2. Be a Smart Shopper
Shopping for business supplies and equipment needs to be a strategic thing. Whether you’re buying an expensive computer or ink cartridges for the printers, you have to think about every dollar you spend. Some smart tips include:
- For better prices on items that you run through quickly, purchase in bulk.
- Always comparison shop before heading to the store. Most office supply stores will match another store’s low prices.
- Always make a list before going to the store.
- Sign up for rewards programs and business accounts with companies you purchase from regularly.
- Keep a budget to track all expenses. This will prevent you from purchasing items you don’t need.
3. Sponsors, Sponsors
Events are very important for businesses. Whether it’s a gala, seminar, or simple meet and greet, events get your bran out in the world.
The downside, though, is that events aren’t cheap. The good news is that you don’t have to spend all of your own money on them. By working with local businesses in your network, you can find sponsors willing to carry at least part of the expenses in return for advertising.
This can help you grow your brand without cutting into your budget.
4. Less Business Travel
As you know, business travel is hardly cheap. Sending two of your employees to an out-of-state meeting for one night can cost you a few thousand dollars.
And while there are times when it’s necessary to travel, the fact is that most of today’s communication can happen remotely.
Thanks to incredibly robust software solutions, cloud services, video technology, and other advanced products, remote meetings are almost as good as face-to-face meetings.
5. Getting the Package Deal
Consider dwindling your list down by bundling services together. For example, phone service, cable, and internet can generally be bundled together in a single, more affordable price.
Likewise, services like web design, content writing, and digital marketing can also be bundled together.
6. When to Outsource, When to Keep It In-House
While there’s something to be said for keeping things closer to home, there comes a time when outsourcing can save you lots of money.
If something isn’t extremely important to your business, consider the possibility of outsourcing.
If you’re looking for ways to grow your small business while also cutting costs, Williams & Kunkel CPAs can lead you in the right direction. Call us today in Flower Mound at 972-446-1040 to have a chat.
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Source: Business.com