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Tuesday, August 9, 2022

7 Money Saving Strategies for Small Businesses

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It’s no secret that small businesses have been hit hard by COVID-19, and will likely be feeling the residual impact of the pandemic for years to come. Whether you’re struggling to keep your business open or simply planning for the future, cutting costs can help your business thrive and stop you from throwing your money down the drain.

Luckily, there are plenty of ways to reduce your overheads and have more money leftover to invest right back into your business. You can do this all without compromising the quality of your goods and services, and keep your existing clients happy while still drawing in new ones. Here are 7 of the best money saving strategies for small businesses in Australia.

  1. Outsource procurement services

Being in charge of procurement within your business can be expensive and time-consuming, leaving you responsible for the cost of a full-time specialist as well as the office space and IT systems they require. Outsourcing your procurement needs to sourcing servicing companies means that you only need to pay for it when you need it, lowering your overhead and saving you the resources needed to manage it yourself.

Furthermore, many procurement agents can use their years of experience and industry connections to get lower prices and other enticing deals, helping you cut down the associated costs even more.

  1. Focus on new forms of marketing

Traditional forms of marketing that focus on reaching your audience offline are expensive and outdated, with digital marketing being a much cheaper alternative. Using marketing channels such as print, broadcast and telemarketing isn’t as powerful as it used to be, and you may be wasting your resources.

Reaching your target audience through digital channels such as social media, SEO practices and content marketing can help bring your business into the present day and help you reach a broader audience with a fraction of the cost and time.

  1. Go paperless

Going paperless can help you to lower both storage and printing costs, as well as improve your efficiency at the same time. Although it may take some getting used to if you’ve been relying on paper all this time, scanning documents helps you send and receive documents effortlessly and at a fraction of the cost.

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  1. Lease necessary equipment

Leasing any equipment you hire will save you from paying large upfront fees, as well as any maintenance, repairs and upgrades that they may need over the years. Most leasing companies will cover these expenses for you, leaving all those responsibilities in their hands and saving your company’s cash.

  1. Follow sustainable practices

Going green is not only a necessary PR move, but it also can save you a significant amount of money as the years roll on. Anything from buying energy-efficient appliances to turning the equipment off when you’re not using it can drastically lower your energy bills and make running your business cheaper.

It can also help draw new customers through your front doors, as now more than ever people are prioritising responsible, ethical goods and services.

Also, read here How to Make Your Small Business More Sustainable

  1. Cut office expenses

If COVID-19 has taught us anything, it’s that working from home is not only possible, but it can help us thrive. Many companies reported higher levels of productivity from their employees while they were working remotely, with people being able to work in an environment that’s tailored to their preferences and without the distractions of their co-workers.

If your employees are happy to work from home, why not cut your expenses and lease a smaller, cheaper office space? This way your employees can retain the flexibility they desire and you’re not wasting your money on an unused, unnecessary rental.

  1. Hire talented but inexperienced talent

While many business owners and hiring agents tend to focus on experience, you’re actually turning your back on the next generation of young professionals who are eager to learn and prove themselves. Not only this, but they’re cheaper to hire than their more experienced counterparts, who demand a higher price tag.

Recent graduates and rising stars need to get their start somewhere, so why not offer them that chance? While you may have to spend a bit of extra time training them, you’ll save money by paying them an entry-level salary and letting them prove themselves before offering them a raise.

No matter how successful your business is going, it’s always smart to save your pennies where you can and be smart about your money. These cost-cutting techniques can help you to invest money back into your business, as well as be prepared for any challenges that the future may bring.

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