Small Ways to Save That Add Up


What business doesn’t wish it could have just a little more money? Running a company is no inexpensive task, and cutting costs is essential to ensuring that you’re gaining profits. That’s why it’s important to put saving money on the top of your priority list.

And there’s good news: saving is easier than you might think. In fact, there are lots of small, easy ways to sock a few — or more — extra bucks away each month, many that don’t even take much effort on your part.

Running a company is no inexpensive task, and cutting costs is essential to ensuring that you’re gaining profits. That’s why it’s important to put saving money on the top of your priority list.Check out these small ways to save that add up quickly:

Most businesses require materials such as paper, ink and postage, and many don’t even realize how much small things like this can add up. If you get rid of it all, over time, you’ll see your savings grow steadily.

“Businesses should shift toward paperless payments for many reasons,” says Mitch Rose, vice president of BillTrust. “Businesses should not be reliant on the [United States Postal Service] for receiving payments. There is already too much going on with the USPS from rising rates, closing of postal locations, lost mail, delays due to disasters or vandalism, etc. Just as important, the cost to a business to apply a paper check payment is significant. There are struggles with keying it in, getting the payment deposited in a timely manner and applying the payment to a specific invoice.”

Negotiate for Better Rates

“One thing we have done is gone to any service providers or partners and tried to negotiate flat fees or just bring down the prices,” says Tim Santoni, president and CEO of Santoni Worldwide Investigations and Backgrounds.

You might be surprised by how often providers will want to keep your business and will arrange for a better price post-negotiation. If they aren’t willing to lower their expenses, it might be beneficial to switch to other providers. Make sure you’re partnered with service providers that you know want to help you grow and aren’t simply taking orders and delivering.

“The more strategic partners and providers you have, the easier it will be to grow,” says Jackie Nagel, owner of small business strategy firm Synnovatia.

Don’t Overspend on Taxes 

Sometimes, if businesses are new to a location, they’re subject to a higher tax rate. In order to avoid spending too much on taxes, take action.

“Go to city hall to determine what your neighbors are paying, and use this to negotiate a better rate,” suggests Pete Collins of PricewaterhouseCoopers LLP in New York City. “Expanding businesses can often negotiate with community authorities who want them to stay in town rather than move and take jobs elsewhere.”

Go Green

Did you know that the average business consumes 3.6 tons of paper per year? Or that companies use 2,400,000 barrels of water a year (of which more than 20 percent isn’t necessary)? It’s obvious that adapting to a greener workplace will not only help you eliminate waste, and that’s great. But eliminating waste also saves your business money. Simply replacing standard light bulbs with alternatives can decrease lighting energy cost by 75 percent.

“More and more businesses are recognizing the benefits of reducing their waste,” says Carrie Hamblen, executive director of the Las Cruces Green Chamber of Commerce. “Not only can businesses save money by reducing their overhead, [but] recycling [is] good for business and benefits us all.” It’s a win-win.

Save the Money you’re Saving 

It may sound obvious, but one of the biggest mistakes people make when trying to save money is spending the money they’ve just saved — which totally defeats the purpose of saving.

“What’s important is that you save it — you don’t fritter it away on something else,” says Fred Brock, author of “Live Well on Less Than You Think.” He also recommends, if you’d like, to “put it into a mutual fund, or whatever your investment vehicle is. Over time, you’ll be able to save an incredible amount of money.”

To rein in your business budget, a few simple cost-cutting tips can make all the difference. Take these easy ways to save into account to save some money.

 

Related Articles

Leave a Reply