Whether you own a small business or you’re the CEO of a big chain brand, everything comes down to money; fair wages for your employees, profits, and the possibility of expanding your business all depending having enough money left in the budget. Of course, if your business is successful you won’t really have to worry about money coming in, but that doesn’t mean you shouldn’t be careful about the money that’s going out. Every penny you save is another penny in next month’s budget, so here are a few ways you can keep your business cost-effective.
Keep your bills low
If you’ve set up shop in an office, the first thing you can do to trim expenses is keep your bills low. The easiest way to do this is to go green. Save money on air conditioning by opening your windows, or using a smart thermostat to customize your facility’s climate control schedule: at a 9-to-5 office, that probably means increasing the heat or AC in the morning and dialing it back (or turning it off completely) in the evening and overnight.
Don’t hire too many people
There’s a delicate balance between having enough people to meet all your business targets on time, and not blowing all your profits on fair wages. You should never cut down on pay in order to make ends meet, so you might have to make the tough decision to let some people go if you have too many employees. You might only need support staff like accountants, lawyers or Interim HR Firms on an ad hoc basis, so you might be better off keeping them on retainer and only using them when the need arises. If you justify having so many people on payroll because business tends to pick up on a seasonal basis, then it might be more cost-effective to hire temporary staff during the holidays.
On the other hand, if you think you’ve assembled a dream team, then your solution might be more flexibility. So far, telecommuting is a widely untapped cost-cutting potential; if you have enough people working from home, then you don’t need to pay rent on a large office to accommodate everyone. Additionally, studies suggest that telecommuting allowances and other types of flexible work arrangements have positive implications for employee morale and job satisfaction, both of which are positively correlated with productivity. There is also less time lost to commuting and travel for employees, so they also save a little money every month.
Marketing doesn’t have to eat into the bulk of your business expenses. Setting up a professional website doesn’t have to cost an arm and a leg, and most of your advertising can be done by sending emails directly to customers on your mailing list, or having a social media page for your business. Of course, reviews and testimonials are the best advertising you could hope for, and they don’t cost you, or your customers, a penny. Be sure to feature this as soon as you can.