In 2019, according to the U.S. Small Business Administration, there were over 30 million independently-run small businesses in the U.S., and only 50% of them survived for more than five years. National Business Capital & Services reported that one of the main reasons half of the businesses closed was due to a lack of capital, so it’s safe to assume that any money spent and earned should be a priority for most business owners.
Running a small business can accumulate costs quickly, and if you are currently a small-business owner, you are probably looking to save on costs wherever possible. Fortunately, there are several cost-effective solutions in which you can cut down on expenses for your business. Everything from implementing telecommuting to using retail business technology to save money can help you reduce your overall costs.
As many large companies and businesses transition to the digital age, it only makes sense that small businesses follow suit. Utilizing business technology will not only help to minimize costs but will also help to streamline your business and increase overall efficiency.
An example of how switching to tech can save on costs is by going paperless. Many small businesses tend to use paper, ink, postage, and such for bills and invoices. While these supplies may seem insignificant, at first, they can rack up costs over time. By employing a digital interface for billing, invoices and even filing paperwork, this will help you reduce some of those costs as well as streamline the way your business runs.
Get Rid of Landline
Another way to cut costs by using technology is by getting rid of your landline. Landlines can be expensive and, in this age of smartphones, can lead to unnecessary expenses. Switching to cellphones only and voice over IP will not only reduce costs but will also allow you to take business calls anytime, anywhere.
Another form of technology that can cut costs is telecommuting. Some businesses won’t be able to convert to telecommuting but if you can, it can lead to huge savings. Telecommuting will allow you to save on operating costs and might give you the opportunity to save on space. If some of your staff can telecommute, you might be able to rent or lease a much smaller space, which can save you money.
Buying in Bulk
Buying in bulk is one of the more common ways for small businesses to save money because it drops the price per unit and can add up to substantial savings over time. Buying in bulk will also reduce the frequency of checking and restocking your inventory, making it a more convenient way to run a small business as well.
Buy Used Equipment
Regardless of whether your business is a barbershop or arts-and-crafts store, all small businesses will require some form of equipment. Buying brand-new equipment can be very expensive and much pricier than refurbished equipment. Buying used but in good condition products, business equipment can greatly cut down on overall costs.
Negotiate for Lower Prices
As with most small businesses, you’ll probably be dealing with different vendors for supplies. These vendors are business owners just like you and are most likely willing to negotiate prices with you rather than losing you as a customer. Everything from supplies to bills can be negotiated to help save on money.