8 Ways to Cut Small Business Expenses

One of the main concerns of small businesses is to reduce expenses. However, it does not require any expertise or great effort to achieve the goal of cutting expenses at small businesses. It is about making informed and smart choices when it comes to spending your limited funds.

Here are 8 smart ways to reduce expenses without compromising on the quality, productivity, and security of your small business:

  1. Using modern communication technologies: When you have to send across any communication to your existing or prospective clients, use email as the medium. Say no to regular mails. This will help you save on the cost of envelopes and stamp papers. Use of Internet will enable you to pay off your mobile bills, electricity bills, and other invoices—without making a trip to various offices on your own or hiring somebody for this. You can talk to your remotely located clients and potential employees through videoconferencing, Skype, Webex etc. Thus avoiding unnecessary trips will substantially reduce the business cost.
  2. Ditching the landline: Discarding the conventional business line in favor of a cell phone can save you a lot of money. So, use your cell phone and be on the lookout for a corporate cell phone plan. Having a corporate cell phone plan will further reduce your business costs.
  3. Going paperless: Use a cell phone and Internet, rather than paper, while communicating with your clients. Paperless business transactions will help you to control recurring business expenses. Use paper when it becomes absolutely necessary. Adopt the system of digital invoice and bill payment. Ditch file cabinets, and keep your paperwork on your computer.
  4. Embracing online marketing: By adopting online marketing, you can promote your small business in a more effective way—and at a lower cost. So, having somebody for SEO and internet marketing, and social media marketing can turn around your business. Thus, you can reduce the cost of traditional marketing.
  5. Outsourcing services: Outsourcing your services, such as internet marketing, payroll, HR, will not only help you curb expenses, but it will give an impetus to your business. By hiring a remote employee who works exclusively for you can get cost-effective solutions within the required time. Once you outsource internet marketing, payroll, HR, and other such services, you don’t have to have an exclusive department for these roles. This can really save you a fortune.
  6. Buying used equipment: Buying brand new equipment and furniture is a costly affair. It puts a severe strain on the finances of the small businesses. Therefore, purchasing second-hand furniture and equipment can help you save a lot of money.
  7. Sharing office space: Sharing office space can be far cheaper than renting a place. As you are a small business, you don’t require that much space to run your business. So, sharing office with somebody is the best option available.
  8. Driving a hard bargain: If you are a smart bargainer and skillful negotiator, you can purchase a number of things at a cheaper price. This can help you reduce the expenses of your small business.

It is tough to start and establish a small business as it guzzles lots and lots of money. However, these useful cost-cutting measures can help you save your valuable resources without compromising on productivity, quality, and security.