Ten Money Saving tips for Small Businesses
Controlling expenses is a must for small business success. And with an ailing economy,
cutting costs takes on greater importance. No one really likes to operate on a bare bones budget, but in dismal economic
times, small business owners may have to take unpleasant but necessary measures to stay afloat. The following suggestions
for cutting expenses can help businesses remain profitable.
1. Turn
off the lights
One simple way that businesses can reduce power costs
over time is to use lights only when necessary. But who really has time to act as the lights-off police? Thankfully,
motion detectors can help with this problem. The lights come on when someone enters a room and they go off when they
leave. How simple is that?
2. Shut equipment down at
the end of the day
Computers, photo copiers, printers, and other equipment
consume energy whether they are being used or not. So turning them off at the end of the day or when they are not going
to be used will save money.
Developing an energy efficiency
program can save businesses thousands of dollars a year. For help with creating an energy efficient business, review
the federal government’s
online resources.
3. Outsource business operations to professional
service providers
Contracting with accountants, writers, marketing specialists,
Web hosting companies, and other professional service providers can save thousands of dollars in personnel costs.
4. Hire temporary employees
Full-time
employees are going to receive their wages and benefits no matter how small or large their workloads are. By reducing
the number of full-time employees and hiring temporary employees to provide extra manpower during peak production periods,
businesses can reduce expenses associated with employing full-time workers.
5. Seek out college interns
One way to lower personnel
costs and help others is to develop an internship program. Hiring college interns – at no cost or a much lower
pay rate – makes it possible to get the job done while helping students develop the experience and skills needed to
compete in the job market.
6. Decrease employee overtime
It can be difficult to decrease employee overtime. And if employees have become accustomed
to increasing their income through overtime pay, ending it could cause a backlash that will have to be addressed. But establishing
more efficient operating procedures, hiring temporary employees (at lower rates), and outsourcing activities may make it possible
to decrease overtime.
7. Consider decreasing employee
benefits
No employer wants to reduce benefits. After all, benefits
are important for maintaining a productive workforce and showing employees that they are valued. In harsh economic times,
however, there may be no choice but to reduce benefits such as insurance coverage and employee incentives.
8. Use less paper
Businesses,
even small ones, use an enormous amount of paper. Paper-saving techniques help businesses save money and help the environment.
Two-sided printing, double-sided photocopying, reducing photocopying, and using both sides of the paper (i.e., note book paper,
tablets, etc.) will reduce the amount of money spent on this important office supply.
9. Cut postage expenses by using overnight couriers for emergencies only
Federal Express’ fees for sending a one pound package with standard overnight delivery start at $16.10.
Sure there are couriers that charge less, but the cost of using any courier regularly can add up quickly. Planning ahead
and improving work flow will help decrease the need for expensive courier services.
10. Find savings on office supplies
Of course, no business
can operate without office supplies; so, buying supplies in bulk helps businesses get the best possible prices. Why
not negotiate with vendors or join vendors’ membership programs to receive discounts?
Other cost-cutting measures for office supplies include designating one employee to purchase supplies, buying generic
supplies, and sticking to the basics.
Copyright © 2009 Katherine Williams
All rights reserved.
