When you are a small business owner, every cent counts. That is true in terms of the money that you bring in and the money you pay out. In the first few years of business, you might struggle for income as your start up establishes itself and becomes known and if your struggling for income, then it is doubly important that you find ways to keep costs down in order to maximize profits.
Priority number one then is saving money and it doesn’t matter how small that saving is, even a couple of cents here and there can add up to make a difference. Here are four ways that your small business can save money.
Avoid full time office space
The internet is a brilliant thing, not least because it allows businesses to work remotely. In 2016, 43 percent of Americans said that they spent at least some time working remotely and that number will only increase as technology advances, internet speeds increase and it becomes easier for us to connect from any place and at any time. It isn’t unfeasible to think that offices could become a thing of the past in the next 20 years or so but if you can run your business from home or remotely already, then you should definitely consider doing so to remove the costly expense of hiring full time office space.
Pay other small business with services rather than cash
If you can avoid shelling out for services, do so. There are many creative ways in which you can do this but perhaps the best is by offering to pay other small business with knowledge rather than cash. Say your start up is an accountancy firm and you desperately need a new logo. Approach a small graphic design business and in turn for their expertise in designing something new for you, you’ll help them out with their books. It’s a win-win for both companies. Sure, it won’t always work but it is worth a try if it helps reduce your outgoings.
Reduce your tax bill
Even Albert Einstein once said that the hardest thing in the world to understand is income tax. When a genius such as Einstein struggles, its little wonder that small business owners often end up overpaying or not realizing ways in which they can reduce their tax ball. Thankfully, there are all kinds of perfectly legal Small Business Tax Shelter Ideas out there that you can research which can help reduce your costs in tax season.
Come up with communal advertising strategies
Marketing can get very expensive for a small business but it is an absolute necessity to get your name out there and your brand known. You can reduce some of the cost of marketing by coming up with a communal advertising strategy in which you work alongside another local business. If you own a hair salon, consider approaching wedding dress shops to pool together your resources and offer one package in a single advertisement. Many goods and services can be interlinked this way, meaning you split the costs of advertising and can even share information about suppliers, customers and distribution channels as well as a means of saving money.