Running a small business can be a big challenge, especially if you are trying to get traction in a competitive market where you have to operate on low margin. In business, there are only two ways to increase profits. You can either sell more goods and services, or cut costs. While it is great if you are able to sell more goods and services, when lean seasons inevitably come, the only option is to cut costs.
This article focuses on five great ways for small business owners to save money by cutting costs. Here are the tips.
Money Saving Tip #1: Don’t Get Caught in the Tech Trap
With so much pressure to transact online, many small business owners view technology as the clearest path to profitability. This kind of thinking is short sighted. While no business can do without some tech, it is best to avoid buying all the pricey tech items you might be lusting after. Tech is great, but computers and peripherals and software applications are notoriously fickle in this era of planned obsolescence. Why sink money into costly hardware and installation media? Look for lean machines and Software as a Service (SaaS) solutions to build the infrastructure that supports your business.
Money Saving Tip #2: Save Your Receipts
Everything from business machines to business lunches can potentially be written off on your tax returns. Some items, like business machines and fleet vehicles, can sometimes incur depreciation, so that has to be factored into your plans to write off expenses. The important thing is to save your receipts.
Here are just a few things that can, in certain circumstances, save on your business tax bill:
– Computers and networking equipment
– Office supplies
– Office space
– Certain insurance policies related to your business
And the list indeed goes on. To get credit for any of it, you need to be able to show the IRS your receipts.
Money Saving Tip #3: Outsource
When you run a small business, it is very easy to be the boss, the accountant, the marketing manager, and the collections department. Sometimes, it cannot be avoided. You just have to wear more than one hat. But, you can be judicious when it comes to what direction you aim your efforts, nonetheless, if you outsource the small stuff. Think of the tasks that most benefit from your attention (i.e. the core of your business) and outsource what is menial or secondary to that. Hire a virtual assistant from an online freelance marketplace if needed.
Money Saving Tip #4: Re-purpose
Get more mileage out of your work. This is especially handy for marketing. Re-purpose research as blog posts and white papers. Reuse last years idea with a new name. You do not have to reinvent the wheel. If you have paid for a piece of content to be created by a freelancer, roll it up into eBooks, how-to articles, and anything else you can to extend its usefulness.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Singapore is better positioned than any other Asian country to cash in on an increasingly digital world and Singapore Has Established a Lucrative Innovation Fund for New Enterprises and all topics related to Entrepreneurship, Tech and Business Registration in Singapore.