As a new year quickly approaches, it’s a wonderful time to review your current small business expenses to see where savings can be had. It’s all too easy for overhead costs to spiral out of control when running a business. We’re detailing the best cost-saving ideas for the new year, from marketing to remote work and even payment processing. Follow these seven money-saving recommendations to help your small company’s bottom line.
Make Remote Work Permanent
There are numerous advantages to employing remote and flexible working policies. Not only does this allow employees to work from home, but it can also reduce your small business expenses by eliminating costly office space requirements. According to a study conducted by FlexJobs, 82% of workers said they would be more likely to take a job with a company that offered flexible working arrangements. Additionally, thanks to an abundance of remote workers, many scheduling softwares are available to help you create and maintain work for employees with a few simple clicks.
Eliminate Phone Lines
Another small business expense you can cut? This may sound crazy, but your phone line can go out the window. Video chat is an easy replacement for phone calls, thanks to the internet. Apps like Skype, Google Hangouts, and Zoom are convenient and free in some instances. These platforms also allow for numerous people to be on a call simultaneously, making it perfect for small businesses. Many also offer a chat option, giving your employees are an easy way to communicate with co-workers and clients alike.
Check Out Open-Source Software
Small companies may save money by utilizing open-source software, or OSS. Open-source software is software that can be modified and shared by anyone. It is often created as a collaborative effort, with the code being made publicly available for anyone to use and improve. Open-source software is often free, or available at a lower cost than proprietary software. Start looking for open source alternatives to pricey business applications like QuickBooks or Salesforce right away to help lower small business expenses in 2022.
Word of Mouth Advertising
Word of mouth advertising is when people talk about a product or service to their friends, family, and colleagues. It’s one of the most effective forms of advertising because it’s trusted and reliable. When people hear good things about a product or service from a friend, they’re more likely to try it out themselves. Best of all – it’s FREE! With traditional and social media advertising costs rising, consider adding a simple incentive program for current customers to help bring business your way.
This may seem obvious, but it is still worth mentioning. If your small business has yet to go green – now is the time! There are many reasons to go paperless, but the biggest one is probably the cost savings. Going paperless can save small businesses expenses on toner cartridges, printer repairs, paper waste disposal costs, and more. Get started by researching cloud apps, such as Dropbox, to store files and e-signature software, such as DocuSign digitally, to collect client signatures digitally.
Reduce Payment Processing Costs
No longer can it be said that cash is king – electronic payment acceptance is a must in today’s environment. Unfortunately, credit card processing or ACH payment acceptance is costly for small businesses. The good news here is you have options and can quickly reduce your payment processing costs. The key is to work with a reputable and established payment processor. Ask questions and review rates – make sure your provider is a partner invested in your small business. Established in 2010 with merchants from coast to coast, Payment Savvy is a leading merchant services provider. Reach out today to receive a no-hassle review of your current costs and watch your savings pile up!
Create an Annual Budget
This may seem like a no-brainer, but many businesses go from year to year without a budget in place. Spending the time and planning your finances will help you to spot areas where you can save money. First off, create an expense budget you can realistically stick to. Next, draw up a sales forecast. This way, each month you can compare your spending against your sales forecast to determine where your money is being spent and how you can potentially cut back.
Whether your small company is just getting started or has been operating for years, it’s never too soon to start thinking about cost-saving ideas. We hope that these seven tips will help you decide where to focus your efforts in the new year. If you’re looking for more information on how to optimize all aspects of your business, connect with us on Linkedin to read more articles hot off the press!