Running a small business is not an easy task. There are always additional problems and costs that will crop up, ensuring that your life is not as easy as it could be. That is why it is important to try and reduce expenses as much as you possibly can.
Lower your rental overheads
Rental costs are one of the biggest overheads for a small business. Even a small office space can cost a significant amount. This gets even worse if you require storage space for stock. Needing a full-time warehouse can often be one of the biggest barriers to a small business expanding effectively. It is an instant, large increase to overheads, which makes cash flow a more difficult prospect to manage, but if the business has nowhere to store additional stock then it means orders might not be able to be fulfilled. It is a quandary that has forced many small businesses to close down, or fail to expand to their full potential.
This is why a lot of small companies now use business storage units in which to keep extra stock. Entering into a short-term lease agreement will give you the extra storage space you need without significantly increasing overheads in the long term. Rented storage allows small businesses to expand at their own rate without putting themselves into financial difficulty. One of the benefits of this method is that if the storage is required for longer, it just means that orders are coming in regularly, which will in turn cover the additional costs.
Use open source software
Software is very expensive. If you want to buy the full office suite for your company, it can end up being a huge increase in overheads. This is especially concerning if you are using office software to create your receipts and other important paperwork. There is a solution to this problem, though. By using open source office software, you can significantly reduce your overheads without reducing functionality. This will allow you to do everything that you want to do, without having to pay a huge amount for it.
What is also a positive to open source office software is that it usually allows the opportunity to save into other file types. So, if your customers use Microsoft Word, for example, you will be able to save your work to that file type so that they will be able to open the documents that you send to them.
Advertise in unique ways
One of the best ways to cut down on costs is to find new ways to advertise. This is a great tip because advertising is undoubtedly important to a small business, but the costs associated with it can often be far too high. That is why you should use as many different methods to advertise your wares as possible. For example, on customer receipts, you could have advertisements for other deals that you are currently offering, or you could mention related products. This will inform people who have used your business of the other services you offer. Because they have already shopped with you, you will have a good chance of bringing them back to spend their money in other areas.
Social media is also vitally important. Use your social media accounts as often as possible, and have a precise aim when it comes to tone. Younger audiences will react positively to different cues than older generations for example. This will help to get your name out there as people are more likely to share content that appeals directly to their sensibilities. If your social media is shared enough, it can be much more effective than traditional advertising, at a fraction of the cost.
Use cheaper products where possible
You do not always have to use brand-name products. Simple acts such as cutting down on how much you spend on paper and ink cartridges can have a big impact on your overheads. Using a cartridge refilling firm or using third-party cartridges will return big savings in the long run. Using cheaper paper for internal printing is another way you can cut costs, while using energy-saving bulbs will also help. All of these methods will have a positive effect on your general expenses.
Employ your family members
This one is a great way to cut down on the taxes that you pay at the end of the year. If your significant other is without a job, you could employ them at your business. This will allow you to reduce the overall taxes that you pay at the end of the year, without taking money out of the firm.