Are you a small business owner ready to save some coin? If your New Year’s resolution is to say goodbye to 2018 and hello to a tighter budget, we’ve got some handy tips on how your business can save money. You don’t have to make any drastic changes in order to create long lasting effects. Here are 5 easy ways to save money in the new year.
If there are functions that need attending to in your business, but you’re a little strapped for cash, try outsourcing. This is a great option for small businesses, allowing them to save serious money by limiting permanent staff and all associated overheads. These days, there are many great websites that allow you to source amazing freelancers and contractors who can help you out – at a fraction of the cost.
2 Streamline your invoices
Cash flow is a serious issue for many small businesses and managing all your incoming and outgoing expenses can be a full time job in itself. Get on top of your cash flow, by streamlining your invoice process in order to get paid faster. Perhaps you need to shorten your payment terms or chase payments sooner rather than later. Send invoices instantly from your phone, with an app like QuickBooks, to ensure you get paid faster.
3 Review expenses for the year
Ongoing expenses can really start to eat into your profits. Each year, make a habit of looking back over the books to review your expenses. See where you spent the most and what expenses could have been avoided. Look for any expenses that you may be able to get rid of or minimise for the new year. As businesses grow, expenses typically rise, but you don’t want to be spending any more money on running costs than you absolutely have to – especially in the first few years.
4 Negotiate with suppliers
Good supplier relationships can go a long way to helping your business. Each year, it’s a good idea to not just review your expenses but also your suppliers. Were you happy with the business you received? Are their prices competitive? If not, it may be worthwhile trying to negotiate with your suppliers to reduce costs, or shop around and see if you can get more value for a cheaper price elsewhere. It pays to talk to your current supplier first though, in case they can do you a good deal in order to keep your business.
5 Go green
Look around and see how you can save a little cash by going green. Are there office expenses or overheads that you can minimise? Can you save money on your electricity bill by using energy-efficient lighting? Can you cut down on your paper costs and extra stationary? If you need furniture or equipment, consider buying second-hand or used items to save a few extra dollars. You could also save costs by allowing staff to work from home where possible.