For many businesses, running an effective company requires a lot of money. It’s important to have the money to finance equipment, provide benefits, pay employees and keep inventory stocked-and that can take up big bucks. But just because you’re strapped for cash doesn’t mean you should avoid conducting business altogether.
There are ways to cut back on expenses without cutting back on your business practices or profits. And ways to save money each month
1) Hold off buying new equipment until your old stuff breaks down
There will come a time when you need to purchase new equipment for your business-whether its computers, printers or machinery, there are bound to be some items in the works that’ll wear out eventually. Instead of shelling out all of your money at once for new equipment, wait until the old stuff breaks down and invest in those items later.
2) Share resources with other businesses
If you’re a small business owner and don’t require a lot of space or unique equipment, there’s no need to hire employees and buy tons of stuff just for your business to run smoothly. Instead, consider working out an arrangement with another company that has spare space-you can use it as needed and split costs proportionately. Or maybe offer to “rent” some of their items at discounted rates so you can save money on overhead costs.
3) Buy online instead of using brick-and-mortar stores
Did you know that everything from clothing to office supplies is cheaper online? If you purchase all of your small business needs through a reputable online store and get free shipping to boot, you’ll be able to save a ton of money. Plus, the inventory is often greater than what’s found at traditional stores so you can stock up more easily.
4) Leverage deals by using coupons
If you’re on top of your coupon game, there are dozens of websites where you can find deals for everything from food to travel expenses. If you have trouble being organized or are unsure how best to use your coupons while promoting your brand, just ask any nearby Facebook users if they’d like to join a coupon-sharing group with you…after all, everyone loves saving money! says Paul Haarman. Moreover, these coupons can be found on sites like ShipTheDeal.com.
5) Start accepting bitcoins as payment for goods and services
It might seem far-fetched now, but you never know when an alternative currency is going to take off. Right now, there are websites out there where you can set up a PayPal account and accept bitcoins as payment for goods and/or services rendered. Bitcoins can be cashed in later for regular currency at any time so this could be the opportunity your business needs to really make some dough.
6) Rethink how you travel
If normal commuting or travelling with family members is important to you, don’t cut back on it just because money’s tight. Instead of shelling out hundreds of dollars per month for gas or taking three separate flights to save on expenses, consider using one of the many car-sharing apps that are available today (such as Uber). Or find a cheap flight online at Skip lagged or Momondo to save on travel expenses. You can also try sharing your hotel room with others if you’re travelling for business-just ask around Facebook groups if there are any other entrepreneurs in your area looking for someone to split the costs with.
7) Utilize existing technology
Doing something old-fashioned is not always best just because it’s what you’re used to doing; sometimes we end up paying for things that we don’t even need when we could easily use something new and free. For example, many businesses still like to use fax machines and scanners instead of communicating via emails and Wi-Fi (which they already paid for). There are plenty of apps out there that will allow you to scan and send documents for free. One example is using an online faxing app, which you can use conveniently anytime and anywhere.
8) Create a virtual office
Working from home is nice because you can save on commuting costs (albeit, you will have to pay extra for great Internet service), but if your business requires regular meetings with clients and/or coworkers, consider working out of a local library or coffee shop instead. You’ll not only save money on rent, but you’ll become more productive as well because the environment will be much less distracting than at home. Plus, this kind of arrangement can be ideal if you’re just starting up and don’t want to commit to an expensive lease quite yet.
Conclusion by Paul Haarman:
It’s true that having a small business isn’t cheap. Fortunately, it’s also true that you don’t have to spend much money to achieve the same level of success as larger companies do. The tips listed above are just some of the strategies that entrepreneurs in dire financial straits have been using successfully for years now-and they can help you too!