The desire to save money sometimes leads to cutting corners. Cutting corners, though, leads to problems like mistakes or sloppy work. Mistakes and sloppy work mean unhappy customers. Unhappy customers mean lost money. The good news is that there are better ways to save money for your small business. Consider these ways your business might save money in 2018.
1. Go Green
Being mindful of the environment can help you save money. Here are just a few examples.
Make a rule in the office that if a document doesn’t have to be printed, don’t print it. By going paperless you reduce the amount of money you spend paper and ink. Often times these are the most expensive office supplies to stock up on.
Downsize the office or get rid of it all together. While this may be difficult for some, others may find it pretty simple to switch. Telecommuting is a great way to allow your employees to work from home. In this article Thebalance.com provides some cheap and free ways to communicate. The article also has more ideas on how to save money. Your employees will thank you for cutting back on how much they spend on their commute, and your bank account will thank you for how much you save on overhead.
Unplug Your Machines
Do you have a copier or printer that sits idle for most of the day? When it’s in hibernation mode it is still consuming power. Consider unplugging it before you leave for the day. Rather than putting your computer to sleep at the end of your shift turn it off completely. Just like the copier this takes up energy too. Do you leave your phone cord plugged into the wall even if your not charging anything? Yup, this also is increasing your electric bill. Take a look around the office and see what machines are energy wasters. You’ll be surprised at how much you can save by just unplugging a few electronics.
2. Revisit Your Budget
Creating a budget can be difficult. Sticking to it can be even harder. However, creating a successful budget and following it can save you a lot of money in the long run. You undoubtedly have a budget, but is it working for you in reality? Look back on 2017 and consider where the money went. Did unanticipated expenses arise? Did anything cost less than you thought? Use your newfound knoweldge to fine-tune this year’s budget.
Take a look at one of our previous posts about how a CPA can help you create a budget.
Delegating work to another company for many seems like an expensive investment. However, it can pay off long-term. For instance, hiring another company to take care of human resources responsibilities may behoove you. With the ever-changing laws that affect HR it’s easy to lose track of whether or not you’re staying compliant. Staying on top of this yourself takes time away from the many other responsibilities. Third party companies can help mediate if problems arise between employees. They can also assist in payroll and make sure that you are Osha compliant.
4. Cancel Unused Services
This may seem obvious but you’d be surprised by how many programs you pay for that go unused. Sometimes when we think we’ve canceled a service, if it’s on automatic bill pay, it can be easy to overlook. Review all of your transactions. If a service has gone unused, or barely used within the past 6 months, unsubscribe. Also consider how one service might meet multiple needs and consolidate where possible.
5. Manufacture in the U.S.
There’s no question that labor costs in countries like China and Indonesia are cheaper than in the U.S. However, the prices of shipping and oversea costs continue to grow. Manufacturing in the U.S. could save you a lot of money. In his article, The Washington Post’s, Nicholas Ventura points out five advantages to keeping manufacturing in the U.S.
This choice can also benefit your brand. Some consumers find it very important to buy their goods from companies who make their products directly in the U.S. By manufacturing in the country you could find yourself with a whole new set of clients.
6. Hire a Bookkeeper
In the beginning, many small business owners try to take care of their finances on their own. With all the other responsibilities of owning a business, mistakes are easy to make. Small mistakes can add up quickly. By hiring a bookkeeper you can prevent costly mistakes. A bookkeeper can help you in many other ways too. They can work with you to figure out what your company needs. They can assist you with where you’re spending too much money and help you invest some of the money you’ve saved.
If your budget is tight at the end of the year don’t feel like you have to cut corners. By taking advantage of this list you can help not just your company, but the world around you.