The old saying goes that you have got to spend money to make money. This is true, but small businesses rarely have a lot of money to spend. Saving money while running a small business is the only way to get some larger project or an investment off the ground.
This doesn’t mean that you should skimp on your service or the way you approach customers but you should try to cut corners wherever you can and to plan out how you will use your savings.
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1. Office space
An office space is probably the biggest item in the company budget. The office should be both functional and presentable enough to impress clients and business partners. However, there are ways you can save money while still having a great office. The first thing you could do is share a larger office space with one or two small businesses that aren’t your competitors. Another option is to work on establishing a virtual office.
2. Low-cost incentives
Employees are another big item on the company budget. However, this is definitely your most important investment. If you want to hire only the best and the brightest, you need to pay them accordingly. Unfortunately, a lot of small businesses can’t afford to spend a lot of money, so they end up skimping on their workforce.
Mind you, there are ways to retain employees even without giving them bonuses. One of the ways is to offer them a promotion or a share of the profit once the company gets on its feet. Small perks such as longer vacations and better parking spots go a long way as well.
3. Energy bills
Energy bills can add up and really hurt a small business, especially in its infant stage. One of the ways you can reduce this cost, in the long run, is by turning to green energy sources. That way, you won’t be dependent on fossil fuel based energy and know your business isn’t damaging the environment.
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Installing 5kWp Solar System as your energy source won’t halt your business for long and it means you’re all set in terms of power for the next 25 years. Also, the difference in energy bills will be noticeable right away.
4. Rent or buy used
Getting all the equipment necessary for running a company can be difficult for a small business. That’s why you should buy used products whenever you can. The only thing you need to check is whether the equipment is in good operating condition, and try to get a good price.
Renting is also an option and, even though it is a costlier, in the long run, you might be stuck with it at first because you don’t know how long your business will last and the sad truth is that most of them don’t even survive their first year.
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5. Negotiate with vendors
Vendors are the most important part of a retail business. You need to have access to goods at all times and you need to have someone to distribute them. This is where you can save a lot of money by cutting a deal with a specific vendor. By agreeing to use their services for a period of time you can get a discount in return.
However, this comes with a few drawbacks. Having a relationship with one vendor means that your business is tied in with theirs and if something goes wrong – both companies will suffer even if only one is at fault.
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Try to save money when you’re running a small business. It will help you get your business off the ground which is very important because the competition is tough in all industries.