As business owners continue to navigate their way through an increasingly, fragile economymany are undergoing cost-cutting measures designed to keep their businesses afloat. We previously looked at 5 basic money-saving tips for small businesses: (https://www.apaylo.com/post/5-essential-money-saving-tips-for-small-business-owners). It is important to know that making cuts for the sake of making cuts is not always necessarily a positive thing- that in the long-term, some cuts can actually be detrimental to the business itself (and its employees)- so it is important to fully analyze the long-term consequences of the cuts- from both pro and con sides.
Here are five more creative, outside-the-box ideas for saving money, courtesy of American Express (https://www.americanexpress.com/en-us/business/trends-and-insights/articles/27-money-saving-tips-from-successful-small-businesses-annie-mueller/)
1- Bring in sponsors wherever possible– Whether it be business conferences, events, or galas- inviting corporate sponsors to advertise their brands at your events can pay off in spades; and is usually a good trade-off for both your business and the corporate sponsor; especially if the products/services in question are interrelated in some way.
2- Outsourcing is your friend- While your core staff of employees is extremely important to the everyday functioning of your business, salaries plus payroll taxes can add up substantially- and it is important to know where to draw the line in keeping certain employees- or even entire divisions of your company- in-house; and knowing when to outsource to an outside firm who is a long-standing expert in the field; and can provide a professional service that will substantially cut down on salaries and labour costs.
3- Negotiate with vendors and service providers. Negotiating can help drastically lower your costs- especially if you’ve been doing business with them for a long time and have a comfortable relationship with them. Remind them of this; and if you are one of the small businesses who has been impacted negatively by Covid-19, don’t be afraid to speak up and tell them this. In many cases, your suppliers/vendors will want to work with you and have many incentives to do so- because after all- it is your business that is keeping their
company afloat too- and many times they will work hard to accommodate you.
4- Go virtual and telecommute. Working from home has become a way of life due to the recent pandemic; and many people are now finding it a comfortable and viable alternative than going into the office. Make telecommuting a more frequent occurrence and go virtual wherever possible. With the cost of renting office space (and the overhead costs that come with it) at an all-time high, you could save large amounts of money by keeping rented office space minimal- and having some employees work from home.
5- Offer internships. Many up-and-coming college and university graduates need to beef up their resume; and what better way to help them do so by offering internships at your business? Many young people bring unique skill sets to the table that could be very beneficial to your business (such as social media marketing, web development, blogging, and coding) and the obvious upside here is the savings incurred by your business by having unpaid interns helping out with work. In turn, you will be helping them gain practical experience in a business environment to prepare them for their careers ahead- so it truly is a win/win situation for everyone.