6 Ways Your Small Business Can Save Money
Recently I received a phone call from my alma mater asking for donations to their Faculty of Arts, where I studied when I received my BA. She asked me for $5 a month, or "the cost of a single Starbucks coffee" (well played, University of Winnipeg, well played).
I'll be honest with you: I declined to give back to the university for the time being. My business is still in it's infancy, and saving money is pretty important to me right now. However, this conversation got me thinking about the ways I work to keep costs low for myself during this stage (even if that means saving that $5 a month), and I thought I'd share some of the things I've learned:
One of the most interesting assumptions that people have started to make about me since I began running my business is that this is the lifestyle I lead:
This is, much to my chagrin, not how I live my life. In fact, it's a little more like this:
Don't get me wrong, I'm doing just fine financially, but I'm not baller status quite yet. As a result, here are some of the areas where I cut costs or try not to indulge in order to keep my business expenses low:
Buying or renting space you don't need yet
One of the easiest ways to save a few hundred dollars a month (minimum!) is to avoid buying a brick-and-mortar store or renting office space for as long as you can. This, in my opinion, is the single biggest benefit to working from home.
Sure, there are benefits to an office or renting a desk in a co-working space, such as access to a board room, printing area, etc, but unless your business has grown to the point where you need those things on a consistent basis, having client meetings in coffee shops should be fine for now.
Spending on expedited shipping
Unless it's a business emergency (ie: your business will shut down without this parcel/package) you can wait the extra day or two.
Additionally, if the shipping charges for a particular item are outrageous, ask yourself: do you really need that beautiful embossed day planner that badly? Odds are, you probably don't.
Custom website design
I get it: you want to build a website that stands out from your competitor's. You want something that is completely yours, and is an accurate online representation of your business and your values.
However, what's more important is simply having a website, rather than worrying about whether or not it's built custom from scratch. Many people choose to work with existing Wordpress or Squarespace templates, which are easy to alter and personalize without the investment in a custom designed site.
I'm a firm believer that the best thing a person or business can do for themselves is to start to build a positive reputation for themselves online. What's great about this is that social networks like Facebook, Twitter, LinkedIn and Pinterest (the biggest and most popular ones for businesses) are all free to join.
This means that if you do hustle a little bit (or hire someone like me #ShamelessPlug) you can start to build a name for yourself and your services without having to invest in paid advertising just yet.
Not only does putting off doing paid advertising beneficial because it keeps costs low, but people will appreciate that you're connecting with them on a real, human level, and not just sending a barrage of ads their way.
Office supplies you don't need
Confession: I LOVE going to stationery stores. Every time I step into Tiny Feast here in Winnipeg my heart starts going pitter-pat and I start imagining how charming my desk would be with all those fountain pens, notebooks, staplers... you get the drift.
As much as I would love to take everything from Tiny Feast home with me, I have to ask myself: how often do I use a stapler (never), how often do I use paperclips (also never), do I really need a handmade mug to store my pens (not at all)... you get my drift.
As tempting as it may seem to try and pimp out your desk with heaps of Pinterest-worthy goodies, resist the temptation for now. You can always indulge in that gorgeous cork-top desk in the future.
Subscriptions for software you don't need
This one always gets me. I pay for a few subscriptions to various content scheduling and monitoring services (HootSuite, Buffer, etc) and it sucks to pay the monthly fees... but without them I would go absolutely bonkers and not be able to manage my shit. So, for me they are a necessary evil.
However, unless you're in the digital marketing business odds are you can avoid a lot of these monthly expenses by using free software to do what you need. Some great options are:
- Insightly (CRM system)
- Freshbooks (accounting)
- HootSuite or Buffer (free versions - social media management)
- Toggl (time management - I'd be lost without this tool)
- Trello (project management)
- Dropbox (file sharing)
It may seem tempting to invest in expensive software, or to buy a bunch pf products up-front "just in case" but if you aren't using the tool on a daily basis, and if it isn't something that your business can live without (eg: I would be utterly lost without Buffer, for example) then consider sticking with the free version, or finding a free alternative until the time comes when you either a) need the service enough that you should pay for it or b) you can afford to invest in it.
Do you have any money-saving tips for small businesses? Is there something that you wish you had learned when you were starting out? Tweet at me or tell me in the comments!