No matter if at home or in business, there are always savings somewhere. For home budgets, checking the costs of meals out, reducing wasted meals, cutting the cable cord are all among the many suggestions.
For businesses; however, finding savings are absolutely essential. It might not be immediately evident, but small things can make a big difference over the long term. With the help of some insights from the U.S. Department of Commerce's Minority Business Development Agency, consider these suggestions for small business owners:
You can lower storage costs, printing costs and improve overall efficiency by running a paperless office. By scanning documents you can send and share information effortlessly saving your business time and money.
Use a 0% credit card balance transfer
Transferring the debt balance from one card to a 0% intro APR card is a great way to save money on interest charges and pay down your debt.
To avoid the big upfront costs you’d face when purchasing equipment consider a lease. You not only conserve your company’s cash but you can save a substantial amount of money in repairs, upgrades and maintenance since many lease agreements cover these expenses.
Collect cash in advance
When extending credit to customers consider collecting a percentage of cash up front with every purchase. This will help your company reduce risk, improve cash flow and save money in collection efforts. For example, you can require a 25% down payment on all future purchases made from your net 30 account holders.
Ask for the discount
The suppliers you work with may have quantity discounts of 50% or more depending on the terms. You may be able to meet these requirements and qualify for a lower price. To find out, ask about discounts and what you need to do to earn them. You may be able to get anything from an interest-free loan in the form of vendor credit to a healthy discount for paying early.
Do everything possible to avoid fees like an ATM surcharge, bounced check fees, and most recently the debit card fee. If you can cut significant costs by switching to another bank then it may be just what you need to do to save your company money.
Consider bundled services
Some companies offer bundled services that include phone service, cable, internet, fax, and web hosting. Bundling two or more services from the same company can save your business hundreds of dollars per year.
Manage Employee Spending
The misuse or abuse of company-issued credit cards occurs among employees at every level. By setting guidelines, activating pre-set limits and alerts and monitoring your monthly spending reports you can save money and avoid costly mistakes.
Offer Electronic Invoices
Electronic invoicing (e-invoicing) is the issuing of invoices by email directly to your customer. You can reduce your company’s print and postage costs if you begin sending invoices electronically. Not only that, and employee will not be using their valuable time stuffing invoices into envelopes.