When you’re a small business owner, you understand that every dollar counts when building your company. However, many business owners focus on increasing sales rather than lowering expenses. Keeping your expenses as low as possible is just as important as boosting revenue.
As a small business owner, I know how difficult it can be to decide where to cut expenses. There are many areas in your business that you can’t afford to reduce costs. So, how do you choose where to cut your business expenses?
Here are alternative tools to cut down on your business expenses, without making too many sacrifices.
1. Emphasize social media
Advertising your small business doesn’t have to be expensive. Instead of pouring thousands of dollars into marketing campaigns for your small business, consider using social media platforms to convey your message. Social media platforms, such as Facebook, Instagram, and Twitter, allow you to engage with customers without breaking the bank.
Most social media platforms are free. And, some offer paid advertising options that are typically cheaper than other forms of advertising. Devote time to building your social media following organically. Consider using social media to connect with customers, effectively place ads, and advertise your business to cut costs.
2. Ditch the professionals
Review your professional fees to find where you can cut costs. Many small businesses use accountants and bookkeepers to keep track of finances, business taxes, and payroll taxes.
Evaluate the professionals you currently use and keep the professionals your business needs. Consider taking on some of the less complex tasks professionals handle to reduce your professional bills. Cut expenses by educating yourself on business and payroll-related taxes. Consider using software to help manage your business’s accounting and payroll, which can significantly cut back your professional fee expenses.
Ditching the professionals may also allow you to gain more experience and knowledge in other aspects of your business.
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3. Go paperless
Nearly 27% of waste in the United States comes from paper. Cutting down on paper waste is not only good for the environment but also your bottom line. Reducing your business’s use of paper will also cut down on other costs, such as purchasing ink cartridges.
Simple alternatives to paper use include printing and copying paper on both sides, reusing paper for notes, and updating employees with work-related information digitally. Go paperless by sending customers coupons and updates via email instead of mailing them out directly.
4. Make the most out of employees
Having employees is a substantial expense for small businesses. However, employees are a huge part of growing your business. Instead of resorting to layoffs, consider giving employees additional responsibilities or cutting hours.
5. Dial back and power down
Eliminate additional costs by better managing your utilities. Research ways your business can decrease electric and gas use.
Small changes in your business’s temperature can impact your electric bills. Consider investing in a programmable or smart thermostat to lower your long-term expenses. Programmable thermostats allow you to customize your business’s climate. For example, you can set the thermostat to dial back or turn off completely overnight. You can also control the temperature with a standard thermostat. Instead of relying on air conditioning in the summer, set the thermostat to a higher degree to save money on utility bills.