The MetLife and U.S. Chamber of Commerce Small Business Index reached its highest level of confidence since COVID in Q3 of 2023. Yet, there are still many businesses that are battling rising costs and trying to make every dollar count. According to the report, 33% of small businesses feel the economy is healthy (up 9% points from Q2). The report read, “Small businesses also feel better about their own business health and cash flow: Two in three (66%) report that their business is in good health and roughly seven in ten (72%) say they are comfortable with their cash flow.”
But “comfortable with cash flow” doesn’t mean you can’t use some business savings tips.
10 Ways to Save Money in Your Business
- Negotiate with your suppliers. Don’t be afraid to negotiate with your suppliers for better prices. Many suppliers are willing to negotiate, especially if you agree to order in bulk or commit to a long-term contract. Perhaps you can qualify for a discount by consolidating vendors and using the same one for multiple needs.
- Shop around for insurance. Compare insurance rates from different companies before you renew your policy. You can save a significant amount of money by switching insurers.
- Take advantage of tax breaks. There are tax breaks available to small businesses. Be sure to consult with a tax advisor to learn about the tax breaks you may be eligible for including green incentives.
- Outsource tasks that don’t require your level of expertise. This may seem like an oxymoron. Why should you spend money when you want to save it? But if you’re spending too much time on tasks that don’t require your expertise, you’re wasting billing hours. Instead, you should outsource those tasks to a freelancer or virtual assistant. This frees up your time to focus on critical revenue-generating tasks. You can make a more significant sum by spending a small amount of money.
- Automate tasks whenever possible. There are many software tools that can help you automate tasks like accounting, marketing, and customer service. Automating tasks can save you a significant amount of time and money. Using AI to generate administrative correspondence and communications can also save you time that you could be using in revenue-generating pursuits.
- Use free and open-source software. Examine your current subscriptions and fees. Are they all necessary? Can they be replaced by free and open-source software programs? If you’re not sure search online for free competitors of ___. You can find free versions of everything from operating systems to productivity software.
- Barter with other businesses. Bartering is a great way to get the goods and services you need without spending any money. For example, you could barter with a local printer to get free printing services in exchange for promoting their business on your website.
- Get creative with your marketing. You don’t have to spend much money on marketing to succeed. There are many low-cost and free marketing strategies that you can use, such as social media marketing, content marketing, referral marketing, and email marketing. Plus, you can learn how to use these through free videos on YouTube, e-book downloads, and even an Alameda Chamber & Economic Alliance Lunch and Learn. (We have some of the best and most affordable, learning opportunities in our community.)
- Offer referral bonuses to your customers. Referral programs are a great way to generate new leads and sales without spending money on advertising. Offer your customers a bonus for referring new customers to your business. Even if you provide them with a gift certificate, chances are your referral bonus will not only make them more loyal (and may get some free social media marketing out of it when they post about it) but there’s a very good likelihood that they will buy more than the discount or gift card is for.
- Fire less profitable clients. If you are a business that provides a service and your clients are on different rates based on when they signed with you, consider what each one is worth. Either raise their prices so all your clients are paying the same rate or factor in referrals to decide just how profitable they are to you. If you have limited hours in your day to perform the services, you need to ensure you’re servicing the clients who are most profitable to you.
Bonus tip for saving money (everyone could use a bonus these days, right?):
Track your expenses. One of the best ways to save money on your business expenses is to track them. This will help you to identify areas where you can cut back. There are several software tools that you can use to track your expenses. Some of the most popular include: QuickBooks, Xero, FreshBooks, Zoho Expense, Expensify, and Concur Expense.
By following these tips, you can save money on your business expenses and boost your profits. Isn’t it time you boosted your consumer confidence?