You’re not alone if you struggle to keep up with inflation and high salary demands. Most small business owners are right there with you. But these tips and process improvements can help you reduce costs, even in a challenging economy.
Audit Expenses Carefully
This step isn’t fun, but knowing exactly where your money goes and what you could do without is essential. For example, if you’re spending money on an advertising campaign that’s never produced a lead, you might want to cut that cost.
Choosing the right technology for your business can help you save money and advance your business in various ways. Online payment services, open-source software, teleconferencing, and remote desktop applications are just a few ways you can reduce business costs with technology.
Only purchase or subscribe to the software you need. Look for scalable solutions, such as our payroll system, that will allow you to buy or subscribe to the tools you need rather than a one-size-fits-all solution with bells and whistles you may never use.
Bundle and Save
You may save money by bundling services, such as your cell phone and internet. And with today’s technology, you can save time and money by bundling and integrating your HCM services, such as payroll, HR, employee benefits, recruiting, hiring, training, and Workers’ Comp, with bookkeeping, your POS, and more.
Ditch Your Landline
Landlines can be expensive and are often unnecessary. To reduce business costs, consider replacing your landline with cell phones, VoIP, or virtual phone lines.
The cost of printing, paper, ink or toner, mailing supplies, and postage can add up to a considerable business expense. You can cut costs by switching to a digital invoicing and bill payment system, retaining all necessary paperwork digitally instead of printing and filing, implementing electronic recruiting and hiring systems, and more.
Connect With Customers and Leads Online
Research free directories and list your business where applicable. For example, if you own a brick-and-mortar business, make sure you are listed on Google My Business (this puts you on the map). Also, if it’s a good fit, find the proper social media outlet for your business and take advantage of a free business profile and messaging.
Reevaluate Your Space Needs
Leasing office space is one of small business owners’ most significant overhead expenses. Compare your current space to your needs – are you using every square foot wisely? If not, consider downgrading your office space to a smaller, cheaper space. That alone could save quite a bit of money.
If your employees can work from home, let them. That will free up office space while improving employee morale and loyalty.
Keep an Eye on Utilities
Utilities add up at home AND work. You can lower costs by keeping the thermostat low, the air conditioning reasonable, and all electronics and lights turned off when they’re not in use.
Cut Down on Travel Costs
With today’s technology, you can keep your business in-house, replacing in-person meetings with phone calls, emails, and video conferences. If you have a company car, make sure it is essential. If you decide the vehicle is necessary, can you downgrade to something more practical and less expensive in terms of fuel, taxes, and maintenance?
Outsource What You Can
Possibly the most significant burden on any small business is Human Capital Management. HR and payroll professionals can demand a high salary; therefore, many companies outsource these tasks to save money. Another example is accounting. Keeping a CPA on retainer is cheaper than having one on staff, and data entry can be done remotely. Information technology and cyber security are necessary for most small businesses, making outsourced IT management an appealing alternative to hiring staff. There are more examples, but I’m sure you’re catching on.
Automate Where Possible
Automation is even better than outsourcing in many cases. And there are scores of cloud-based solutions, software packages, and software as a service (SaaS) options for business owners in any field. For example, automating and integrating timekeeping with your payroll will reduce the cost of paper, data entry, and time spent correcting errors.
Reduce Credit Card Debt
Using the company credit card seems like a good plan until you start paying those bills and high-interest rates. It may take time, but reducing your credit card debt is a smart way to improve the financial health of any business.
Buy Refurbished and Repurposed
You can reduce costs by buying used furniture and equipment that is often as good as new.
Look for businesses that will barter in exchange for your services.
Eliminate Traditional Workers’ Compensation
With Pay-As-You-Go Workers’ Compensation, you will no longer need to make deposits and estimated payments. You will enjoy increased cash flow and an automated way to manage Workers’ Comp.
SmartPayroll Solutions – HCM Can Help
These steps to reduce business costs involve making smart, money-saving choices daily. After careful consideration and implementation, you’ll gradually get into a money-saving mindset that will improve your bottom line (and your sleep).
If you would like help, call for a free consultation. We help business owners reach their goals by connecting them with the right tools and technology and streamlining their administrative processes. And with our growing network of professionals, we can help you outsource accounting, save on employee benefits, and more.