10+ Tips for Saving Money on Your Business Expenses
September 29, 2023
Sweet Home Chamber
While the MetLife and U.S. Chamber of Commerce Small Business Index reached its highest level of confidence since COVID-19 in Q3 of 2023, many businesses are still battling rising costs and trying to make every dollar count. According to the report, 33% of small businesses say the U.S. economy is in good health (up 9% points from Q2). The report read, “Small businesses also feel better about their own business health and cash flow: Two in three (66%) report that their business is in good health and roughly seven in ten (72%) say they are comfortable with their cash flow.”
But “comfortable with cash flow” doesn’t mean you can’t use some business savings tips.
10 Ways to Save Money in Your Business
- Negotiate with your suppliers. Feel free to negotiate with your suppliers for better prices. Many suppliers are willing to negotiate, especially if you agree to order in bulk or commit to a long-term contract. You could qualify for a discount by consolidating vendors and using the same one for multiple needs.
- Shop around for insurance. Compare insurance rates from different companies before you renew your policy. You can save a significant amount of money by switching insurers.
- Take advantage of tax breaks. There are tax breaks available to small businesses. Be sure to consult with a tax advisor to learn about the tax breaks you may be eligible for, including green incentives.
- Outsource tasks that don't require your level of expertise. This may seem like an oxymoron that you should spend to save money, but let’s explore it. If you need to spend more time on tasks that don't require your expertise, you should outsource them to a freelancer or virtual assistant. This frees up your time to focus on more critical revenue-generating tasks. You can make a much more significant sum by spending a small amount.
- Automate tasks whenever possible. Many software tools can help you automate accounting, marketing, and customer service tasks. Automating tasks can save you a significant amount of time and money. Using AI to generate administrative correspondence and communications can also save you time that you could be using in revenue-generating pursuits.
- Use free and open-source software. Examine your current subscriptions and fees. Are they all necessary? Can free and open-source software programs replace them? If unsure, search online for "free competitors of ___." You can find free versions of everything from operating systems to productivity software.
- Barter with other businesses. Bartering is a great way to get the necessary goods and services without spending money. For example, you could barter with a local printer to get free printing services in exchange for promoting their business on your website.
- Learn about member discounts for chamber members. If you're a member of a local chamber of commerce, ask about their member-to-member discounts. Many businesses offer discounts to chamber members on everything from office supplies to marketing services.
- Get creative with your marketing. You can spend a little money on marketing to be successful. There are many low-cost and free marketing strategies that you can use, such as social media marketing, content marketing, referral marketing, and email marketing. Plus, you can learn how to use these through free videos on YouTube, TikTok, and e-book downloads.
- Offer referral bonuses to your customers. Referral programs are a great way to generate new leads and sales without spending money on advertising. Offer your customers a bonus for referring new customers to your business. Even if you provide them with a gift certificate, chances are your referral bonus will not only make them more loyal (and may get some free social media marketing out of it when they post about it), but there's an excellent likelihood that they will buy more than the discount or gift card is for.
Bonus tip for saving money:
Track your expenses. One of the best ways to save money on your business expenses is to track them. This will help you to identify areas where you can cut back. There are several software tools that you can use to track your expenses. Some of the most popular include QuickBooks, Xero, FreshBooks, Zoho Expense, Expensify, and Concur Expense.
Following these tips can save money on your business expenses and boost your profits. Isn’t it time you increased your consumer confidence?