Fifteen Ways to Save Money in Your Business

Running your own business is a rewarding challenge. Not only do you get to build something of your own, you get to create opportunities for others while serving customers and getting your vision out there into the world. Along the way, though, you're constantly going to be dealing with expenses. Whether it's your overheads, salaries, inventory, or technology, the cost of doing business can add up fast.

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The good news is that you don't necessarily need to have a massive budget overhaul to start saving some money. Many small and medium sized businesses can reduce costs simply by paying closer attention to their daily operations and making a few smart changes. We've put together a list of 15 strategies that are effective and practical when it comes to cutting down on spending in your business.

Switch to solar power.
Energy costs are one of the top overhead expenses for most businesses. It doesn't matter whether you run an office, a warehouse, a store, or a home based company, you're going to be paying a significant amount on electricity each month. Switching to solar power can drastically reduce or even eliminate this cost over time. More businesses than ever before are turning to solar energy because it's a smart long term investment. There are upfront costs, yes, but many solar buyers take advantage of government incentives, tax credits, and rebates. Plus, with the help of financing and leasing options, you don't need to pay the full cost all at once if you don't have the capital sitting there. Once it's been installed, solar panels typically last up to 25 years or more, and they don't require too much in the way of maintenance. The savings can then be substantial over the time, and you'll be using the power of the sun to power your business.

Choose to go paperless.
If you're still printing out documents, filing papers and cabinets, and mailing invoices, it may be time to go digital. Switching to a paperless system isn't just eco friendly, but it's budget friendly too. The cost of paper, ink, postage, printers, and storage can all add up. Over the course of just one year, those small purchases are going to be a strain on your budget. Instead of doing that, move over to cloud based systems like Google Workspace, Microsoft OneDrive, or Dropbox. This way you can store, edit, and share documents without all of the physical supplies that you'd be using. It also boosts your efficiency because documents are easier to search for, less likely to get lost, and accessible from anywhere. When you waste less time, you become more productive, and that means you can save more.

Look into different types of software.
You don't always have to pay for expensive software. The market out there today offers a huge selection of free and affordable tools that are more than capable of handling your day-to-day needs. For example, you can use Canva for design instead of hiring a graphic designer. You could also try Trello or Asana for project management and manage your finances with Zip Books or Wave. There are even options like Teams and Slack for internal communications. All of these tools have free versions, so you can compare those free versions before you go and buy premium plans. You may be surprised at how much you could get without spending anything.

Talk to your vendors.
If you've been working with the same suppliers for a while now, you may be overpaying without realising it. Vendors tend to offer better rates to long term customers, but only if you ask. Taking the time to review your current contracts and see if there's room for improvement is a good place to begin. You can compare your competitors prices and don't be afraid to negotiate with them. You may be able to get a discount for early payments, bundling services or committing to longer terms.

Let your employees work from home.
Working from home isn't just a trend from the pandemic, it's actually a very intelligent cost saving strategy. And if you don't have a physical workspace where people are required to work physically with machinery or with people, then why can't they work from home? Even if you do it only part time during the week, you'll be saving money on office rent, utilities, office supplies and cleaning services. Remote employees are often happier with their jobs and more productive as a result. Happier workers equals fewer expenses.

Buy in bulk where you can.
Buying your supplies in bulk, but being smart about it is a good idea. You'll save money if you do it wisely. Stick to the essentials that you know that you'll use over time, such as paper towels, pens, packaging materials, and cleaning products. Avoid buying any bulk items that have expiration dates or won't be used quickly. If you overstock, you'll see that clutter and waste are a problem, which kind of defeats the purpose.

Outsource where you can.
Hiring full time staff for every role can blow up your payroll very quickly. Outsource web development, content creation, customer service, and even bookkeeping. There are many websites out there where you can find skilled workers, and there are agencies that you can join that can get the job done too. You won't have to worry about the overheads of full time employment costs and benefits if you do it this way.​

Use interns.
Internships are a great idea. Bringing interns onto the job can help you to reduce costs and give students valuable work experience that they'll be looking for from businesses such as yours. They can handle the admin work, marketing support, research, and customer service. Ideally, you should offer a paid internship that has a small stipend and you'll still be able to save a lot of money. 

Check on your subscriptions.
Are you paying for software or services that you're barely using? It's more common than you think because it's easy for subscriptions to be ticking away in the background without you realizing. You should look through your credit card statements or use expense tracking tools to determine your recurring costs. Cancel anything that's not bringing you value because even trimming up to $50.00 a month from a few services can save you hundreds in a year.

Improve your business's energy efficiency.
We started this article talking about solar power, but in addition to that, simple energy saving habits can cut your costs. LED bulbs instead of incandescent ones can help to cut down the cost of lighting, and you should unplug electronics when they're not in use. You can install motion sensor lights in bathrooms or hallways and set thermostats to adjust automatically during off hours. 

Switch to Voice over Internet Protocol for phone services.
Traditional phone systems can be expensive to install, maintain, and scale. Voice over Internet Protocol services are cheaper and more flexible, and there are plenty of platforms out there that allow you to make and receive calls from anywhere with an Internet connection. They often include good features like call recording, voicemail to email, auto attendant and mobile apps.

Train your employees internally.
If you don't have the budget for external training programs and workshops, then don't stretch yourself for them. Instead, build internal training guides or peer mentorship programs. Let experienced team members lead sessions, or create how-to documents and videos for new hires. Not only is this cheaper, but it strengthens your company culture and ensures training is tailored to your specific needs.

Use open source tools.
Why would you pay for software when open source alternatives exist? Open source tools are free to use, community supported, and surprisingly powerful. A few examples include Audacity for audio editing and WordPress for website content management. The initial setup time does take a little bit to sink into, but the long term savings are worth it.

Cut back on business travel.
Business trips are fun, but they can also add up. Between airfare, hotels, car rentals, meals and incidentals, costs can rack up quite quickly. Before you book any travel, you should check with yourself to see whether things can be done over a video call, because in most cases, a Zoom meeting is all that you need. Reserve travel for the high impact events like closing a huge deal or industry Expos.

Involve your team.
If you want to start cutting costs properly, you need to get everybody involved. Your team members are the ones that see the day-to-day operations of your business better than anyone else. Asking them for their input on where the money may be wasted or how processes could be better streamlined is a good start. They may be able to spot inefficiencies that you hadn't noticed.

Money saved is money earned, and the more efficient your business becomes, the more competitive and resilient it will stay in the long run. 

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