The whole reason you started a business was to have greater control over your earning power. That’s why it can be so frustrating to see your profits disappear to cover a multitude of expenses. While it’s impossible not to incur small business expenses, following some of the tips below can prevent too much of your business revenue from slipping away.
Outsource Irregular of Repetitive Tasks
When your small business only requires some services occasionally, such as copywriting or tax preparation, it doesn’t make sense to pay for a full-time or part-time employee. You must pay that person whether he or she has enough to stay busy or not. Outsourcing these tasks to independent contractors can be a much better use of your business finances. The same holds true for repetitive tasks like data entry that eat up time that you or your regular employees could devote to more important tasks.
Look for Ways to Save by Purchasing in Bulk
Joining a warehouse savings club like Costco or Sam’s Club can help you get the supplies you need for your business at wholesale prices. Just make sure that you truly need the items you buy in bulk to ensure that they don’t sit unused for months or years. Another possibility is to make a list of your subscription services to determine if you could save money with any of them by paying annually instead of monthly. The cloud-based accounting software program FreshBooks, for example, offers users a 10 percent discount for switching to annual billing.
Use Interns When Possible
Many college and career training programs require students to complete an internship towards the end of their studies. This can be a win-win situation for both the intern and your business. You save money because you don’t have to pay regular wages or any wages at all in some cases.
The trade-off is that you agree to assign someone the responsibility of working closely with the intern to make sure that he or she learns as much as possible about working in a real-world business. Be sure to check postings for local colleges and job training centers often to see if they are seeking internships for students.
Automate as Many Processes as You Can
Some decisions that you assumed would save your company money end up costing it more over time. For example, consider a business that only accepts cash and checks because the owner doesn’t want to pay merchant processing fees to accept credit cards. Not only does this inconvenience customers by giving them fewer payment options, but it also makes internal processes more inefficient as well. The time an employee spends manually crediting checks could be wasteful since it doesn’t promote business growth. Automating new employee or client paperwork could also save considerable time.
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Could you use additional ideas on how to reduce small business expenses? Request an appointment with a business coach from our small business consulting company. We will start by going over your current expenses and take it from there.