6 Ways to Save Your Business Money This Year
Cash flow and budget are often the root of headaches and stress for many small business owners, and every dollar saved can add up and make a difference. Here are six easy ways to help you save money in your business right away:
1. Use Electronic Invoicing
By sending invoices via email and receiving payment electronically, you can eliminate significant administrative costs associated with the printing and sending of invoices, recording of payments and processing of paperwork.
If you select an e-invoicing service that also offers bookkeeping functionality, you can keep all your finance in one place, thereby reducing the amount of work your bookkeeper needs to do. Not to mention, many business owners find that they get paid faster with e-invoicing, especially if you allow customers to use their credit cards for payment.
2. Go Paperless
Closely associated with e-invoicing is running a paperless office as much as possible. You’d save on storage costs, printing costs, administrative costs and improve overall efficiency in the long run.
3. Audit Your Recurring Payments
Many subscription services are convenient because you can set it and forget it. However, if you’re subscribed to a product or service yet haven’t used it for a while, it’s time to see if you want to continue paying for it. This is particularly true for subscriptions to cloud-based software. Many business owners are either paying for services that they barely use, or they’re subscribed to plans with features that are not relevant to their needs.
If you’re paying for features you don’t use, it may be time to downgrade to a lower-cost plan or search for a service that better meet your needs.
4. Re-evaluate and Renegotiate Your Utility Bills
When’s the last time you look at your utility bills and wonder if there are cost-saving alternatives? Instead of paying a phone company for a landline, you could consider switching to VoIP and conduct your calls from your computer or via an app on your smartphone.
If you haven’t looked at your cell phone bill lately, it may be time to see how your plan measures up. Lately, many providers are offering more data for a much lower fee. You could save quite a bit if you just pick up the phone and call your provider.
5. Hire Smarter
If your business is growing rapidly, or if your needs are seasonal, you could consider hiring remote contract workers instead of full-time on-site employees. There are many websites where you can search for remote workers, depending on the type of help you need and the level of expertise you’re looking for. This will not only give you better control over your cash flow but also save you money by eliminating the overhead associated with on-site employees.
6. Shop Around For Insurance
Paying for insurance can take a big chunk out of your budget, especially for small businesses. Check with you trade associations as many offer group insurance with competitive rates. You can save on business interruption insurance if you manage to find a place to conduct your business in the event of a major disaster.
For medical insurance, ask for information on past claims and the loss ratio of paid claims to premiums before you commit to a provider. Always evaluate the trade-off between a higher premium (lower deductible) vs. a lower premium (higher deductible) to help you choose a plan that not only gives you sufficient coverage but also the peace of mind.