Six smart ways small businesses can save money
Small business owners don’t usually have vast reserves of cash they can dip into should things get tough. Here, content head at digital marketing agency BlueGlass, Irma Hunkeler, gives six smart ways small businesses can save money.
Life for a small business is rarely easy, and with maintaining healthy cash flow a major issue, opportunities for saving money – however small – should be seized wherever possible.
The “gig economy” has its fair share of critics, but use it well and it can really be to your advantage. Lots of companies today are employing freelancers to take on a range of jobs, from email marketing to business development to cyber security, and everything in between.
There are now 1.91m independent professionals according to The Association of Independent Professionals and the Self-Employed (IPSE), and the UK’s burgeoning freelancer base is a great resource you could tap into if you need something done but want to save costs at the same time.
Using freelance capacity is a much more flexible option than recruiting a permanent, in-house member of staff. It allows you to employ someone for a specific period of time to do a job, with the rate agreed upfront.
Encourage employees to be financially savvy
It pays to be smart with money at work. While you might be looking for ways to tighten the purse strings, are your staff doing the same? Encouraging them to help find ways the company can save cash, however small, is a no-brainer.
If you’re big enough, you could organise a workplace investment scheme or offer your employees suggestions on how they could save money – such as a cycling to work in order to cut commuting costs.
Remember that employees have an appetite for saving. This infographic shows that even when winning £50 playing online games, for example, most people would choose to keep it in the bank rather than spend it. So, if your employees are keeping an eye on their own wallets, it’s likely that they’ll also keep an eye on their employer’s wallet too.
Review, review, review
A tip from the world of personal finance that we can apply to ways small businesses can save money is to review outgoings and strike out any that you don’t need. Just as consumers often have gym memberships, magazine subscriptions and paid streaming services that they rarely use, it’s likely your company does too.
Review your spending and get strategic – if you’re definitely not using something that you’re paying for, and it’s having no tangible effect on the company, get rid of it and save the money, or put it into something worthwhile instead.
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