For small business owners in particular, expenses and profitability tend to walk hand-in-hand. In other words, the more money you pay each month towards your essential overhead expenses, the less free capital you have available to fund your business’ future growth. Unfortunately, as a founder of a small business, you may not walk into your new venture with extensive training in every area of business management and growth. Here, it can be helpful to learn from successful business owners to find out what options you have for trimming overhead expenses so you can grow.
Use Cloud-Based Technology
There is no doubt that cloud-based technology has a lower price point than most physical server and data storage and backup systems. As well, today there are a wealth of mobile apps that sync well with cloud-based server systems to permit you to do away with expensive software licenses, hardware updates, security monitoring programs and more. You can also tap into inexpensive online invoicing, bill payment, tele- and web-conferencing tools and other internet-based business services.
If you are still using – and paying for – a landline for your phone service, you have just identified an area of big potential business savings for your company. Most people today use smart devices for personal and work communications. These devices are often long distance friendly as well, and you can use inexpensive online services for expensive international calls. You can even go mobile with your office to save on the expense of maintaining an office in a physical location.
Outsource Certain Functions
If your monthly bookkeeping tasks are fairly routine (which they often are in the startup phase) it may not make sense to pay a staff accountant or bookkeeper. Instead, consider outsourcing this task to a firm that can do bookkeeping tasks for you. This same strategy can work well for making outbound cold sales calls, performing basic human resources tasks, handling IT security monitoring and more.
Opt for Internet-Based Advertising and Marketing
Social media tools have cut the average small business’ advertising and marketing costs to a fraction of their former selves. For example, for just a few dollars per day, you can tailor an online ad to a specific target customer group, monitor the ad’s progress on a real-time basis and adjust your budget as needed. You can also use social media to interact with customers in real-time, respond to questions and concerns and build customer loyalty.
Make Your Business “E” Friendly
It is not longer necessary to maintain hard copies of invoices, receipts, files and other documents. Now you can use e-data storage resources to store and maintain all the information you need. This will free up finances used to purchase paper and ink, maintain printers and copiers (not to mention fax machines), buy file cabinets and file folders and other accessories.
With these five cost-saving small business tips, you can invest the funds you save in overhead into doing what you got into business to do – succeed and become profitable.
About the Author: Rylan Haup is a successful small business owner. He credits his decision to opt for cheap servers at http://www.togglebox.com/ as part of the reason for his growth.