Do a business budget to determine where to cut back on all expenses.
- Sublease your space, share space or rent smaller space.
- Always check for cell phone and telephone promotions.
- Conserve all resources: a. Reduce utility bills by turning off lights using energy saving bulbs and lowering heat. b. Lease equipment or subcontract out tasks that can save labor.
- Ask to have finance charges lowered on your charge cards.
- Direct deposit for payroll cuts expenses and time.
- Lower interest rates on loans.
- Check bank statements carefully for added fees that may be charged.
- Cut back on all of your travel and entertainment expenses.
- Cut back on catered parties and do potlucks instead.
- Supplying food and drinks for your employees should be cut back.
- Only buy inventory that will be sold quickly, negotiate with manufacturers to drop ship or stock inventory for you.
- When marketing, purchase incentives can be more effective than branding ads. A call for action to get the customer to purchase now.
- Give employees financial incentives when business is increased.
- Offer a 4 day work week or hire part-time employees.
- Give titles rather than raises.
Business owners must be cautious and conscious of where all the money is being spent and to think about ways to save. Have your accountant help you with money saving tips and always know that once you spend money it is not always easy to make it back. Always consider when you spend there should always be a return on the investment. Let me know other money saving tips that have worked for you. For additional planning help for your small business, contact your local SCORE.