Every successful business needs to be profitable, but there are a lot of businesses owners that want to make money because they have a very personal stake in its success. The U.S. Census Bureau did a survey on business spending, and they found that 60.3% of the businesses they surveyed were funded by the owner’s or the employee’s personal savings. Profit is important for every business, but one of the easiest ways to keep your business in the black is to make sure you’re saving money on operating costs. You may think you’re running a tight ship, but there are always ways your business could save money. If you want to ensure that your money is being spent in the most efficient and effective ways possible, make sure you follow these money saving tips.
Evaluate your employees
It’s important to make sure that you always have enough employees on staff to run your business, but it’s very likely that you have more employees working certain shifts than you need. Spend some time observing your employees during their usual shifts, and pay special attention to what their doing. Do you notice that your employees are constantly on their feet helping customers, or do you notice a few standing around waiting to be needed? You may be able to only schedule a few employees for some shifts, or you may be able to let a an employee or two go if you have to many people on staff.
Make some business allies
You may not know it, but it’s very likely that your surrounded by businesses that would love to work with yours. You can save a lot of money by splitting advertising costs with a neighboring business by buying ad space in a local paper or website. You could even organize special sales with businesses that sell goods and services that complement your business. If you offer plumbing services, do a special deal with a nearby home goods store that gives their customers discounts on certain services. If you run a nail salon, see if the near by tanning business is willing to do a two for one deal.
You may have been using the same supplier for years, but you could be getting a better deal with someone else. When you find a good supplier it’s understandable why you wouldn’t want to look anywhere else, but you may be able to find the same dependable goods and services from someone who would be willing to charge you less. Do a little research and get some price quotes from surrounding suppliers, you may be surprised by how much you can save.
Switch up your communications provider
Our employees probably have to spend a lot of time on the phone or online in order to do their jobs. You could be saving a lot of money on phone and internet costs by shopping around to see if you can get a better deal. See if you can get a special package for businesses, they usually offer discounts to their customers that they know will be using their services frequently. If you make a lot of international calls, you may want to consider finding a hosted VoIP service so that you can save on phone costs.
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Carolyn T. is an avid blogger with a Bachelor’s degree in Economics.