According to The Guardian, inflation in the US reached a 40-year high in 2022, with a phenomenal rate of 9.1%. The rising costs aren’t slowing down in 2023, and it’s making the cost of running a small business extremely challenging, which is why many SBOs are searching for innovative ways to save money. If this sounds familiar, have a read through our top tips below.
Regular Reviews
Businesses go through rapid change, meaning software purchased several months ago may be obsolete now. To avoid paying for services you aren’t using, have regular reviews of your business operations and let any unnecessary subscriptions go. Additionally, if there are cheaper alternatives to the tools you’re using, explore their feasibility and consider switching.
Operate Remotely
The cost of purchasing office space is another cost on top of everything outlined above, so why bother if your business can operate 100% remotely? The Covid-19 pandemic has already shown the world that the majority of businesses can be carried out online, and it can be just as efficient – if not more so – than a physical business.
You’ll want to appear professional by having a physical address, but you won’t want to use your home. Therefore, you can use one of the high-quality off grid virtual address services, which will provide you with a postbox that it will manage.
Hold Fewer Meetings
Staff meetings are sometimes essential, but they should only be held if they’re absolutely necessary. If you’re only sending small updates out that you can compile into an email, then send an email. A poorly-led meeting can lead to lapses in productivity, which will lead to low-quality work and less revenue.
Sell Unused Equipment and Buy Second-hand
Every business has that room or cupboard dedicated to equipment that doesn’t get used, but it’s there just in case. If this sounds like your business, then you’ve just put a pile of cash into your cupboard. Gather unused equipment and sell them on to make some quick cash. There are plenty of marketplaces out there including eBay, Facebook, and Gumtree.
On the flip side, if you need to buy new gear, avoid purchasing it brand new. For starters, it will cost a fortune, and secondly, it will be slightly outdated in under a year.
Renegotiate Bill Prices
Paying for stationery supplies, energy, broadband, software, and other rented equipment are all unavoidable costs when running a business, but are you getting the best available price? If you don’t pick up the phone and attempt to negotiate a better deal, you’ll never know. However, before picking up the phone, make sure you research the company and appeal to its overall goals – a price reduction has to benefit both parties.
Running a small business will always be expensive, but that doesn’t mean you need to be throwing money away. Spend time to regularly review your operations, attempt to negotiate contract prices, sell unused equipment, and consider operating remotely, and you’ll see your cash flow increase