5 Ways to Save Money as a Small Business Owner

5 Ways to Save Money as a Small Business Owner

The times have really gotten tougher.

Small and large business owners should be more logical and practical especially when it comes to costs.

The higher the operational expenses are, the leaner the overall profitability becomes.

Small businesses may not afford to live up with very hefty operational costs.

The most successful small ventures today are those that have effectively lowered their operational expenses without compromising scale, quality, and effectiveness.

Not surprisingly, many small business owners have come up with their own unexpected ways and strategies to trim down operational costs.

It is possible to save money without significantly changing the currently stable business practices.

Here are five recommended ways to do so.

 

1. Shorten the Payment Cycle

Small business owners usually give their clients about 30 days to 60 days to settle their invoices.

If you can shorten those terms, your venture will definitely stand to save more money.

Shortened time for turnaround can possibly lead to lower borrowing costs for operating capital.

It can cut the interest payments your business has to pay for taking loans just to make up for the unpaid invoices.

The downside to this strategy is that some clients may be lost, although if your goods and services are really excellent, this may not be a problem.

 

2. Use Free Advertising

Try using guerilla marketing.

It can be very effective but not costly.

Scour through local business directories and yellow pages.

Identify your competitors that may have disconnected telephone numbers or abandoned Websites.

Contact your community telephone company to ask it to assign the disconnected numbers to you.

Ask domain registrars to redirect visitors of abandoned or non-operational Websites to your own online site.

Your small business can reap the benefits of yellow page advertising as well as higher Web traffic.

Hand making budget with the calculator

 

3. Sell Global and Ship Local

Your small business may be spending a lot on shipping costs.

It will save more if such expenses can be significantly lowered.

Furthermore, expanding the coverage of sales to global can be undertaken without requiring much for shipping.

Coordinate with global shipment firms that operate warehouses in various countries.

This way, if customers from London place orders (for instance), the shipping company’s UK operations will take care of the delivery and charge you with local fees.

It may store your goods at its local warehouses.

 

4. Switch to Paperless Operations

Your small business will surely save thousands of dollars each year by making the switch to online or e-forms from paper forms.

The money your operations can save can possibly cover automation costs for your entire processing procedure.

 

5. Operate at Home

Your small business may save much more if it will not spend on monthly rental for office or working space.

You may set up your small business office in an unused portion or room in your own home.

This is more ideal if you do not have many staff.

Just consider moving to a bigger space when the business expands and increases in scale.

Author: Erik Emanuelli

Hi! I am Erik Emanuelli : entrepreneur, traveler and blogger. You can follow me on Twitter, add me on Facebook or circle me on Google.

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5 Comments

  1. Powerful tips Erik. Operating at home cuts down a lot of costs and also gives us lots of flexibility. Plus we don’t have to spend (not only money but also time) on commuting and this is a biggie.

    Giving short time periods to get the invoices paid is a cool tactic.
    Jane recently posted..4 Silly Photography Mistakes And Tips To Avoid ThemMy Profile

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    • Hi Jane,
      operating at home is a big plus.
      Not only you can save a lot of money in transportation and office rent, but it gives you great flexibility of working.

      Thanks for your visit and comment here,
      have a great rest of the week Jane! 🙂

      Post a Reply
  2. Sure, the 5 ways described here are innovative. More particularly, I am taken by the idea of shortening the payment cycle for client. Indeed it will help reduce the cost of borrowing in the circle.

    For small businesses to really make the most from this strategy, it becomes important to ensure that it does not disappoint in its value creation!

    I have left this comment in kingged.com – the content syndication and social marketing platform for Internet marketers, where this post was shared.

    Sunday – kingged.com contributor
    Sunday recently posted..Why Should Anyone REALLY Be Paying Attention To You?My Profile

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    • Thanks for sharing your views, here, Sunday.
      Appreciate it!

      Post a Reply
  3. In the business world nowadays, companies should be more practical. That’s why it’s not already surprising to know the fact that whether small or huge businesses are more logical and practical today, most especially when it comes to costs.

    The suggested ways you’ve shared above are all valuable and effective.

    I agree with all of these, especially in the last tip –operate at home. You can benefit a lot from operating your work at home. It’s more practical, convenient and money-saver. 🙂

    Best,
    Ann07

    By the way, I found this post shared on Kingged.com

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