Running a business is all about making money. While the means through which you do so greatly depend on honesty, integrity, and quality – and thus fulfilling these expectations is also important – it all comes down to profit.
When running a small to medium-sized business, the quest for profit can seem never ending – especially at the beginning. As a result, it’s not uncommon for small business owners to lose sight of the single best way to make money: by saving it.
As the saying goes, a penny saved is a penny earned. Small business owners can increase their bottom line by lowering their costs. With this in mind, let’s take a look at the best ways for small businesses to save money in 2023:
Turning a profit is close to impossible if business owners are paying retail prices for supplies. The margins are too thin. That’s where buying in bulk comes into play. By increasing the volume of supplies you purchase at once, you reduce the overall cost. Warehouse memberships like Costco and Sam’s Club are an affordable way for small business owners to have access to wholesale prices for virtually everything they need. Once you make the switch to warehouse membership purchases, you’ll wonder how you ever ran a business without them.
Chances are your shipping costs take a significant bite out of your revenue. That’s because carriers tend to charge an arm and a leg for small orders. As a small business owner, your orders are almost always going to be small. The only solution – it seems – is to negotiate in hopes of a lower price. But what if there is another way? The same companies that specialize in shipping auditing software also offer SMB shipping rate programs for small to medium-sized businesses. This is achieved by pooling the shipping demands of several businesses into one contract, resulting in lower shipping costs for everyone.
Whether your company employs less than a dozen workers or several dozen of them, payroll is likely another major revenue-sucker. But you need qualified people to get the job done, so what can you do? The solution – for small business owners trying to save money – is to opt for outsourced services and talent. While not every company has this option, those with a significant digital presence should consider searching for international independent contractors with the required skills and expertise. More times than not, doing so leads to a noticeable reduction in payroll expenses each month.
Many tasks and responsibilities can now be achieved through the use of business software. Examples include accounting, administrative assistance, email marketing, and screening potential job candidates. Small business owners struggling to turn a profit should analyze their operations in an effort to detect ways to automate tasks through the use of certain software. While the software itself can be expensive – and the rise of software as a service (SaaS) means it’s becoming a monthly cost – it almost certainly still beats the cost of paying someone to do it.
Furthermore, to keep up with the latest technologies, businesses can seek help from TEC to streamline processes, access valuable data, and increase collaboration and communication between employees. It can also help reduce costs and increase business efficiency and profitability.
Many business owners – especially those born before the turn of the 21st century – have a stubborn attachment to paper records. From bank statements to utility bills to invoices and more, it’s not only a lot to physically track and organize, it’s a lot to print. By going for paperless processes as much as possible, such as adopting a utility bill management solution, business owners can not only save trees but also save thousands per year.
Pre Owned Equipment
The sorts of equipment used by small businesses depend on the industry. But generally speaking, all small to medium-sized businesses can save significant amounts of money – especially at launch – by opting for pre owned equipment. From office printers to kitchen mixers, the preowned equipment your business needs is priced far lower than brand-new alternatives. More times than not, the wear and tear is minimal, meaning you’ll be able to rely on these cheaper options for practically as long as you would newer versions.
If you run a business, then your goal is to turn a profit. As most small to medium-sized business owners know, doing so is often easier said than done. However, it’s not impossible. The first step is doing what you can to lower costs and save money.
Julie Steinbeck is a freelance writer from Florida. She enjoys writing about business, finance, health, and travel.