People start their own businesses for many different reasons. Some may want the freedom and flexibility that comes with being one’s own boss, some may want to express their creative or business talents in unique ways, and some may like the idea of a work environment that’s less stressful than a corporate one. Regardless of the reason the end goal for all small businesses is the same, and that goal is increased profits.
However, during these tough economic times many small businesses find themselves struggling. When profits are down and bills stack up, it can be tough to find creative solutions for financial problems. While there are no quick fixes, there are many changes, both small and large, that can have a positive influence on your cash flow.
If you’ve been searching for ways to reduce the costs associated with your business, read on to learn more about interesting solutions to everyday money problems affecting your company.
Ditch the Office
If your business is the type that doesn’t necessarily need a storefront or an office where you welcome clients and customers, you might want to consider ditching the high monthly rent on these spaces and start working from home. As long as your home has ample space in which to work there’s no reason that you need to spend money to work elsewhere. Additionally, you may qualify for home office tax deductions by making the switch.
Your employees might also welcome the change. Between email, text, and phone you and your staff will still be able to keep in touch and work collaboratively. Add in the fact that you’ll all save money on transportation costs, and it’s a benefit for everyone.
While it might not seem like it the costs of using paper can add up very quickly. When you factor in all of the bills associated with ink, mailing supplies, and faxes you’ll be surprised at your final numbers. Luckily we now live in the digital age and the mountains of paper typically associated with an office or business are no longer necessary.
Make the switch to a Web-based fax service to spare the cost of an expensive machine and the paper that goes with it. Choose an online document service that provides a free printable purchase order template or invoice that you can attach to an email. You can also store all important documents on your computer or external drive to avoid the hassle and expense of a filing cabinet. Once you make the decision to go paperless, you’ll not only enjoy reduced costs but reduced clutter as well.
Pay Your Bills
Expenses are a normal part of any business, but when your company is strapped for cash it can be tempting to postpone a payment or two. However, while doing that might seem like it’s giving you some breathing room it can hurt you in the long run.
Most lenders and credit card companies are eager to offer up deferred payments but they don’t do so out of the kindness of their hearts. Late fees and penalties are often tacked on to your monthly bill and these can add up fast. Not only does paying your bills on time prevent these added charges, it also preserves your company’s credit rating in case you need to apply for a loan in the future.
Hang Up the Phone
The monthly bill for your landline is likely nominal, but when you are cutting costs every little bit helps. It’s likely that your landline receives little use as mobile phones become more and more ubiquitous. However, there are other options for those companies that prefer to have a dedicated business phone line and number.
Google Voice is a great option and you can choose a phone number associated with almost any area of the United States. Skype works well and is very useful if you have clients located in other parts of the world. Both of these services are free for basic use and any charges that you do incur will pale in comparison to the cost of a traditional landline.
Keeping your business profitable while still managing expenses can be a challenge but it’s also one that is easily met. Utilize some of these money saving tips and watch your profits soar.