Sometimes business isn’t going as well as you need it to be. When this happens the last thing you want to do is get rid of your staff members. Sometimes it’s better to try and cut costs and ride the storm until things improve. After all, with hard work and dedication, there is always a way to improve your sales and come out better on the other side. Sometimes just by speaking to your team about it could help. From reviewing your website costs to looking over your expenses and advertising spend, below are five ways to save money as a small business.
If as a small business you operate a fleet of cars, then this could be a financial burden to your business. Fuel costs a lot and if not tracked correctly, some employees may not report their spend correctly, costing you more. By using a fuel card for small business you will not only be able to track your fuel spend easier, but you will also able to view usage, your driver’s milage and expense report data whenever you require it. Helping you have a good overview of your spend and able to plan for the future.
If you don’t have an accounts software but have staff members expensing things, then it can be hard to stay on top of things. Expenses are one of those things that just keep adding up and cost more the longer you operate. To save money it’s always good to have a review on expenses to check what is being spent and where. It may be that you have a couple of subscriptions the previous employee signed up for which are no longer used. Or you may have been taking a client to an expensive restaurant which isn’t needed. Once a month make sure you do a review of all your expenses and ask your employees why they are expensing it. Most the time it is for a valid reason but for some employees, they may use expenses without realising it’ not needed.
Did you get a professional to make your website or do you make it yourself? Some website costs add up and aren’t necessarily needed. Depending on your traffic your website host may be charging you too much, so it may be worth moving. What add ons do you pay on top of your hosting? Things like a CDN, is that making your site faster or again could you give it amiss? Look at the price of your SSL or any paid plugins that you may be paying for on your WordPress site. It’s always worth doing a quarterly review on your website costs to make sure you are paying for things that you need.
Do you have an advertising budget that you spend monthly? Do you know what results this is bringing to your business? If you have a team that is doing it for you, ask them to run a report on the success it brings. A lot of companies spend alot on advertising without knowing the return of investment it brings. It may be that you don’t need to run a PPC campaign and would be more successful moving that spend to a Facebook ads campaign, or maybe doing something completely different with you advertising spend like advertising in a magazine or on Instagram.
Renegotiate with Suppliers
Most small businesses will work with a variety of suppliers. Depending on what these suppliers supply, it’s always worth reviewing the costs. Things like your stationery order can easily be changed when compared to a competitor price. Maybe have a meeting with your landlord and see if they will reduce your rent as a long-standing client to them. It’s always worth getting in touch with competitors just to check you are getting the best price and if not, you can then put it to your current supplier to see if they will match it.
There is always a way to cut costs as a small business, the thing to try and avoid is cutting them so much that it has a detrimental effect on your business. For example, you may be able to get cheaper building supplies but at the sacrifice of the quality of the products. Above are five ways to save money however with some research you may find other ways more suited to you.
What ways have you tried to cut costs as a business? Have any ways been more successful than the other? Let us know in the comment box below, we would love to hear from you.