Small business budgets are a precarious thing. Overspend, and you put your business at risk. Underspend, and you can’t grow your business as fast as you want to. Minding your small business costs is all about paying attention to your expenses and cutting the fat. Here are a few tips to ensure that you stick to your budget.
Tip 1: Question every expense
It might seem like overkill, but questioning whether every expense is necessary is a good exercise in prudence. Doing so once a month should be plenty. Primarily, you’re looking to ensure that you’re using whatever software you pay for monthly (and if not, cancel it or find a free version), that you’re paying the best price for your phone service and that you’re not spending unnecessarily.
Tip 2: Look for cheaper alternatives
Technology is making so many things cheaper these days. Skype and smartphones eliminate the need for an expensive office phone system. And there are free versions of software, like customer relationship management platforms, that more than serve the needs of most small businesses. This isn’t to say you should always take the cheapest route, but rather consider whether paying more for something really provides value.
Tip 3: Pull back on extras when
things are tight
Sure, you like having a big box of exotic fruit delivered to your office for your staff every Friday, but does that expense make sense if you’re struggling to pay your taxes or other bills? Don’t be shy about pausing any frivolous expenses, and let your staff know you’ll resume them as soon as finances improve. Heck, that might even motivate them to work harder to help the business grow.
Tip 4: Cut out the printing
For most businesses, printing documents is unnecessary, what with electronic signing software and cloud storage. Plus, it just takes up space when you have to store all those printed documents. It might not seem like much, but printing less will reduce your spend on paper, ink and replacing your printer.
Tip 5: Look at alternatives to
the full-time employee
Yes, you need help in your business, but that doesn’t mean your only option is hiring full-time staff. That can get expensive, especially since you have to pay for health care and other benefits. You may only need part-time help, which can save tons. Or you might just need temporary help on a specific project that a freelancer or consultant can help with.
Tip 6: Negotiate better rates
from your vendors
If you regularly buy supplies or materials from vendors, ask for a discount. Many will be happy to give you one if you place bigger orders. This may shift a few things in your planning, but if you can save by buying more, less frequently, do it. If your vendor refuses to budge, look around to see if you can find a better deal elsewhere. ●
Nellie Akalp is co-founder and CEO at CorpNet.com.
