7 Money Saving Tips for Business Start-Ups
Did you know 8 out of 10 small businesses fail within the first 18 months?
It isn’t because those businesses didn’t have solid business plans or a sales strategy to increase their sales profitability. Rather, these businesses ignored operations expenses and soon couldn’t manage their costs.
To be a successful start-up or small business doesn’t mean you have to be a financial wizard. In fact, there are plenty of ways to cut costs that you can start working towards right now (even if you’re not an economics expert).
Let’s examine 7 money saving tips that can help maintain your business’ profitability.
1. Get on the Energy-Saving Train
The idea of saving energy has become somewhat of a broken record. Everyone knows it’s important, but the thought just sits in the back of our minds and we don’t act. But what if saving energy could significantly save your business money?
Try double-pane windows and light-blocking blinds in your office space and use power strips for all your appliances so they can easily be turned off when you shut down for the day.
Some energy-saving initiatives qualify for tax credits, so there’s another incentive right there to save energy!
2. Be Rent-Conscious about Your Space
Start-ups and small businesses all across the nation are cutting down on the square footage of their spaces by leveraging multipurpose conference rooms and co-working spaces.
Not only can this save on energy expenses and furniture costs, but more collaborative workstations help your employees be more innovative and productive!
3. Leverage Freelances and Contractors
According to a 2014 study done by the Freelancers Union, 53 million Americans are independent freelancers and contractors. Independent workers are more affordable than your traditional employee because you don’t have to provide healthcare coverage or other benefits that quickly add up.
Leverage freelancers and contractors where you can to help cut back on expenses.
4. Make Your Business a Place Employees Want to Stay
Pew Research has shown that 18-35-year-olds (yes, even back from 2000 when Gen Xers were part of this age range) are more open to new job opportunities.
This “job hopping” is because people believe they’ll get better opportunities and more money someplace new than if they stayed at their last place of employment.
To combat this, invest some time and money upfront to make your office space fun and engaging (snack bars, pool tables, company outings, etc.) and reward your employees for their loyalty with quality benefits and compensation.
5. Give Your Staff Work from Home Days
Thanks to technology, gone are the days where your employees have to be in the office five days a week.
By giving your staff opportunities to work from home, your employees get a chance to save on gas and work from the comfort of their own home, and you get to save a bit on energy costs.
6. Cancel Services or Tools You Never Use
Tools and services can weigh down your business financially, especially when you’re investing in more than you need to.
Take some time to review all the tools and software you have and get rid of the ones that are barely ever used to give your financials a bit more breathing room.
7. Leverage High-Tech Software for Improved Productivity
Legacy software can drag your employee productivity (time is money, after all) and your business down. If you can, replace older software with high tech solutions that allow your employees to work more efficiently.
There are even free tools out there like Slack that increase productivity, communication and collaboration across your organization, even when employees aren’t in the same room together.
We Help Small Businesses Lower Costs for Improved Profitability
At Electronic Merchant Services, we provide an innovative suite of business solutions including payment processing and merchant products to increase the financial well-being of your business.