5 Ways to Save on Business Expenses
Running a business is expensive. Depending on the type of business you have, your expenses could include rent, utilities, materials for a product you sell, or paying multiple employees, as a few examples. However, as a small business owner it is possible to cut back on some of your expenses. We have put together a list of ways you can save, and even how to get more money during tax season below.
Find ways to DIY. Thanks to the power of the internet, there are so many skills you can teach yourself. Whether you’re looking to improve your social media accounts or update your website, there are so many tools. For example, Sprout Social has a great blog that is updated frequently and has a ton of great tips for improving social media efforts. DIY can be stressful, so if you need extra help, if you don’t currently have employees to help, a great way to get some help is to hire a contractor. Just make sure if you go this route you are properly paying them.
Plan for seasonal downswings. Perhaps you have a restaurant along a beach boardwalk, or a skip shop. While your business thrives during the season, when you’re off season, expenses can be tricky to manage. By planning ahead, you can find some ways to save. For example, by knowing early what expenses you can turn off, and understand what you will still have to pay regardless, you won’t be caught off guard later down the road with unplanned bills.
The power of partnering, bartering, and negotiation. How many times have you heard somebody say that they lowered their cable bill just by negotiating and asking? Additionally, follow the age-old advice – the answer is always no if you don’t ask. While they answer could still be no after you do ask, there is no harm in trying to lower prices or trade services with other small business owners. You can ask a long-term vendor if there are any price cuts you could get, talk to your landlord about not raising your rent, or run a promotion with other small business owners.
Choose team bonding activities wisely. Team building is important, and while you may think you need to drop all of the dollars to keep your employees happy and engaged, that’s not necessarily the case. Something as simple as arranging a potluck or picking a day for everyone to pack their own lunch and eat together can save on costs of ordering takeout. While off-site activities are good for switching things up, there are ways to keep it simple. For example, maybe you grab a bunch of yard games and go to a park or stay in and play board games. The point of team building is to spend time together as a team, not working, which leaves you with plenty of cheap options.
Stay up to date on tax breaks. Yes, tax season can be a stressful time, and you may find yourself owing money. Did you know that there are plenty of ways you can save during tax season and get back more of a refund? For starters, by investing in your 401K, you are lowering your taxable income, which means fewer taxes the government will take away from you in the first place. Additionally, think of the personal items you own that contribute to your business, for example, deducting a home office or personal car used for all of your business travel.
There are plenty of ways to save, and you may discover some ways not listed here that work for your business. Your business is important, and you don’t want high costs associated with it to affect your personal income and have to draw from those savings.