Running a business comes with a variety of costs. Day-to-day expenses consume a monthly budget while annual licenses and certifications require a larger review of company finances to align with a yearly budget. However, there are a handful of ways you can start saving money for your business today.
Work with An Independent Contractor
An independent contractor will usually be more affordable than hiring an employee full-time. You may also save on retirement contributions or other benefits that you offer to employees. Some independent contractors might even be able to work with their own equipment, meaning you won’t have to worry about paying for equipment (i.e., a computer) for them.
Depending on the type of business you operate, you may be able to source contract workers online or work with a staffing agency to do so. Employment expenses are the quickest way to spend money, so choosing to hire independent contractors is guaranteed to save you money.
Take Digital Payments
Digital payment methods like credit cards or PayPal can make it easier for your customers to pay right away when they place an order, saving you the time and money of dealing with checks. While you’ll still pay certain processing fees, you’ll save money on receipts, invoices, going to the bank and other costs that add up faster than you might anticipate.
Tools like Square and Stripe make it easy for any business to begin collecting payments in a digital fashion. PayPal is a great fit too and offers the flexibility you’ll want.
Learn a New Skill
While your business may consume the majority of your day, you can start to save money by learning a new skill. Instead of hiring a 3rd party marketing company, you may learn how to operate Google Ads or Facebook Ads yourself. Or instead of hiring a web developer to build a website for your business, you can learn how to code and build your own website. Think about a costly area of your business that you could improve or save money by doing yourself. You might surprise yourself by learning a new skill or two.
Consider Renting Equipment
Next to employment costs, the cost of owning equipment can add up quickly. For this reason, you should consider renting equipment for your business rather than buying it.
If you need a specific piece of equipment only occasionally, such as a power saw or drill press (i.e., for contractors and home improvement professionals), consider renting it from a company that specializes in rental tools and machinery. You’ll save money on the purchase of the tool and save time trying to find it when you need it most (i.e., when you’re actually using it). This option is especially good if you’re not sure what type of tool best suits your needs.
When you rent equipment for your business, just be sure you comply with certain lease accounting principles.
Are You Saving Yet?
By using these recommendations, all of them or a mix of a few, you should start saving money right away. Continue to assess your finances on a quarterly basis and determine where you are losing the most money. If it makes sense to hire an independent contractor, change how you accept payments, learn a new skill or rent equipment, start making plans to do so sooner than later.