As a small business owner, you need to be judicious about how you allocate your resources. Generating a significant volume of business won’t make you profitable if you’re spending too much money on your operating expenses.
It’s extremely important to look for savings in every possible part of your day-to-day activities.
Don’t Overpay for Phone and Internet Service
It’s relatively common for businesses to spend too much on their phone and internet service. If you’re paying a high monthly bill for several phone lines, consider consolidating your business phone services to a voice over internet protocol plan.
You’ll have the same functionality and features such as voicemail and call-forwarding, and you’ll also likely have improved call quality.
If you’ve been with the same internet provider for a while, you’ve probably seen your bill rise steadily over time. Check out plans offered by several providers who serve your area to ensure that you’re getting the best possible rate.
Get a Business Credit Card With a Competitive Rewards Program
You should charge as many expenses as possible to a business credit card that offers cash back on your purchases. In effect, every dollar that you spend should entitle you to a specific percentage of savings.
Bear in mind that a rewards program will save you money only if you avoid accruing interest. Ideally, you should make it a point to pay down your balance before each new billing cycle to avoid spending on interest.
If you’re spending more than you can afford to pay each month, you have to reevaluate your spending habits. Also, be aware of any annual fees and closely understand the terms of each credit card that you sign up for.
If you’ll be using more than one card so several employees have access, be sure to put reasonable spending limits on how much each employee is able to spend.
Avoid overpaying for your most commonly used supplies and keep an eye out for bargains. Rather than waiting until you need certain supplies to buy them, try to buy them when they’re available at a discount.
Look for sales on specific pieces of equipment or supplies when you shop online. Also, scan your promotional emails for offers from retailers who are offering store-wide promo codes.
Buy in Bulk
A lot of the supplies that you use in an office or materials that you use to perform a service are more affordable when you buy them in a large quantity.
Buying in bulk is a great way to get extra savings on things that you know you’ll need to use eventually. Ultimately, if you know that you’re going to use something in the course of several months or even as long as a year, it’s a good practice to buy as much as you need.
However, make your estimates about how much of something you’ll need somewhat conservative, and base them on your previous use. Lean towards underestimating your needs rather than overestimating what you’ll need so that your costs won’t carry over into your next fiscal year and make your accounting more complex.
For the best possible deals, make your bulk purchases from retailers who primarily serve commercial customers and sell at wholesale prices. Be sure to look for additional savings with a promo code before you complete a purchase online.
Also, be conscientious about shipping costs. If you have to buy a certain dollar amount to qualify for free shipping and you’re not far off, put some thought into what you can buy to get free shipping without buying something that you don’t particularly need.
In general, however, a bulk-sized order from a retailer in the commercial marketplace should offer you free shipping on most orders.
Use a Budgeting Software
When it comes to organizing and managing their small business finances, many entrepreneurs find themselves confused and stressed out.
Using the best budgeting and forecasting software as per your business need will assist you in managing your finances as well as many other aspects of your business. It keeps track of the business' revenues and expenses, analyzes your financial situation, and provides recommendations in terms of maximizing the profit from each activity.