Attention Entrepreneurs! Small Changes Equal Big Savings
You’re chasing the American dream and you own your own business, way to go! However, do you ever think to yourself, “If only I could make a little more?” One of the easiest ways to make more is to spend less. Below are a few ways to save money on everyday business costs.
Quick Saving Strategies
1. Don’t Do the Work if You Don’t Have To
Many companies spend time creating files or developing new techniques or processes when faster and sometimes better forms can simply be found online. Forms no longer need to be bought at local supply stores, the click of a button can produce any type of form that one may need. If solving a problem, do a little research and see if solutions already exist.
2. Insurance Savings
Insurance savings occur through many small changes. If you raise your deductible (the amount of medical cost before insurance pays) then your premium goes down. So if you are not prone to a lot of injury or sickness, substantial yearly savings can be netted. Preparedness also reduces costs because always buying the cheapest coverage means you don’t have any cushion if something bad happens.
3. Employee Costs
Create incentives to promote efficiency. Having lazy or unskilled workers can reduce production and money in your pocket. Look to potentially hire independent contracts that you don’t have to employ full time. Look for college students or interns willing to work a little harder and for a little less to learn the ropes. Creating commissions and rewards structures can help spur motivation.
4. Logistics
Large costs savings can be found from processes like shipping. Sending mail early in the day often drastically speeds up delivery, making a regular stamp seem like first class mail. Check your mailing list, the U.S. Postal service will actually prepare and correct any incorrect addresses and numbers. They include the zip plus four extra numbers that can help get bar-code discounts.
5. Take Advantage of Digital
The world is quickly progressing and if you don’t keep up you won’t make it. One of the beautiful things about the last couple years is the progression of online sales and processes. In today’s business environment, anyone can save money by going digital. Performing roles and actions online can help cut down on physical supplies like paper and ink. Scanning papers and online faxing now reduces the need for physical paper and materials; no longer must two pieces of paper be used to get a message across. The need for large folders of paperwork is a thing of the past with large secure storage sites and devices.
6. Taxes
No one enjoys Uncle Sam taking their hard earned money, so get as much back as you can. If you are home based, the majority of your household expenses can actually act as deductions for your company. Utilizing your children can also shield you from taxes. You can funnel some of your business income under your children thus putting money into a lower tax bracket. Talking to an accountant or advisor might cost a small fee up front but provide tons of valuable information.
The world of small business can be a scary place, but it can also be a fruitful endeavor. Saving money in a small business can be easy and there are multitudes of ways to take advantage. Simple things like consolidation, smart tax plays, and reducing logistics costs can help eventually move you into a higher tax bracket.
Sources: Entrepreneur.com
This article was written by Josh McCarthy. Josh is currently a double major in Finance and English and thrives off of the thrill of the stock market. He is also a writer for FindAFax.com. To read more of his work, check out his Google+.
