In the current economic market, everyone is looking to save a little extra cash here and there. The internet is full of blog posts and commentaries on how families and individuals can save money at home, but there are far less money saving tips for those who own and operate small business.
At Check City many of our clients own and operate small businesses themselves, oftentimes they need a cash advance to be able to cover payroll for a week or two so we know that even small savings can make or break a small business. These small companies and their owners are in just as much need as anybody, perhaps in even more need, to save money and expenses wherever possible. Saving money for a small business is not solely for reasons of sound commerce like it may be for larger companies, but often saving money for a small business is for the very livelihood of the startup in its entirety.
Because saving money wherever possible is an absolute necessity for a small business, the following are a few tips and tricks that will hopefully be beneficial for the small business owner in their efforts to save money and weather an otherwise difficult financial time. Some of these tips may be common knowledge for some small business owners and some may not, but either way, utilizing as many money saving techniques as possible is the desire as many believe that the salvation of the American economy rests in the hands of its small business owners.
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The first tip that can be offered is for those small businesses with a brick and mortar location. Physical locations of business directly translate to overhead costs of rent, owning, or leasing a commercial property.
And just like in the home, monthly utility bills are a regular and potentially costly expenditure for a small business. Without proper regulation and conservation of the energy that a business uses, the monthly utility bills can cripple a small business’s finances if not managed properly.
Small business owners should highly consider installing a programmable thermostat in their office that will allow them to set and program an energy saving temperature to be maintained by the thermostat. Programmable thermostats can also help cut costs by automatically turning down the heating or cooling when the office is not in use.
Beyond regulating the energy used to adjust the temperature of the small business’s office, small business owners can cut utility bills by using less energy wherever possible. Turning off lights in unused rooms, using only half the lighting banks available, and using energy efficient equipment can all do their part to save the business owner potentially hundreds of dollars per year.
In the same vain as saving on energy costs, one little known energy conservation technique for small business owners to implement is the use of laptop computers over desktop computers. Laptop computers consume up to ninety percent less energy than desktop computers.
Because of this massive difference in energy usage between laptop and desktop computer, small business owners should strongly consider replacing desktop computers with laptops wherever possible in the office or business. This is especially true if the small business relies on employees do the bulk of their work from computers.
By saving up to ninety percent on energy to run a computer, even though the energy needed to power a computer is relatively small, a business operated upon the backs of computers will see a sizable decrease in their energy costs by switching to laptops. Other energy conservation tips for a small business to save on its operating costs reflect those used by homeowners to save on their monthly utility bills.
The conservation of heat in the winter and cool air in the summer through weatherproofing doorways and windows will dramatically lower the expense of a company. So too will installing better insulation along the exterior of the building.
Save on Office Equipment
Other ways for a small business to save money include sharing printers where needed and using discounted or recycled printer ink, as this item can be a regular and costly expense for an office-structured small business. Similarly, a company can save money by using the right and cheapest operating material in all situations.
An example of this would be to use a specialized packaging company for the shipping needs of the company. Specialized business packaging companies can work with a small business to cut typically high shipping costs by being uniquely interactive with the small business and its products.
Find “Cheap” Labor
A final tip for small businesses to save money would be to contact a local college or university to explore internship options. Many educational institutions will partner with companies to provide their students with internship opportunities.
This gives the students college credit and real work experience in a particular field while simultaneously cutting the payroll cost of a small business without sacrificing much if any in productivity. These few tips and others can greatly reduce the amount of resources and finances that a small business uses in their monthly operations.
When it comes to running your small business the financial decisions you make early on can make or break your business in the long run. If you’re just starting your small business it’s important to understand that there will most likely be some tough times, some months it will be tough to make payroll, if and when you run into those months dont lose hope, understand that it’s only temporary and that Check City is here to help.