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5 ways to save money while running a small business

For small businesses, mere survival can be an everyday struggle. Money is extremely hard-earned, while the funds that are being spent need to stretch as far as possible. Sometimes, creative thinking can go a very long way. As far as small businesses are concerned, creative thinking that is geared towards saving money is essential. Some of the potential savings are staring company bosses in the face. If cash flow is an issue that is causing serious concern, then it’s worth considering an approach to secure a swift injection of funds.

Here are five suggestions on how; with a little bit of outside-the-box thinking, the financial burden can be eased on small businesses.

1. Save on rent by allowing employees to work from home

For many people, the prospect of working from home is a dream come true. They feel like they are their own boss, and their level of job satisfaction is sky high as a result. This is a no-brainer of an opportunity that small business owners should take advantage of.

When you choose to allow your employees to work from home, you won’t need such a big office space, which will lead to considerable savings on rent. If you’re worried that they’ll slack off at home, schedule daily Skype meetings where employees can deliver a progress report on their daily productivity.

2. Negotiate better deals on your bills

Depending on what type of business model you run, the nature and range of your office supplies could differ substantially. However, one thing is certain across the board – every business, big and small, needs a range of office supplies. If you have been paying the same rate for a long time, negotiate a reduction. It’s surprising to see how many vendors would soon agree on a reduced rate than losing a customer entirely.

3. Set all of your electrical appliances to timers

Businesses spend silly amounts of money on bills every year just because electrical appliances have been left on when everybody goes home in the evening. This is a shocking waste of money. Arrange for lights, televisions and the heating system to be set to a timer, so that when nobody is in the office, electricity (and company coffers) isn’t needlessly being drained.

4. Hire college graduates

Young people who are fresh out of college tend to be bursting with enthusiasm and excited about the prospect of being in gainful employment after a few years of slumming it. Their level of intelligence is high, even though their experience in the workforce is minimal. This can make them a joy to train, and they command much lower salaries than people who have been in the industry for years.

5. Remove the needless extravagances

Do you really need that coffee machine? The answer is clearly ‘no.’ Ditch the overpriced coffee pods and purchase a large container of instant coffee for your staff. Also, stop paying out for filtered water when tap water will do fine.

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