by Jerry Mooney

(Image source: https://www.pexels.com/photo/woman-in-white-t-shirt-holding-smartphone-in-front-of-laptop-914931)

Managing small business finances can be difficult. Every penny you spend is a penny that could be profit. That is why most small business owners should do what they can to cut costs. 

As an example, borrowing from an SBA 7a lender can be a good option if you need a loan. But you have to think about more than just the cost of borrowing – you need to look for ways to save money on the everyday expenses of your business.

Shop for Used Equipment 

Equipment can be a major expense at some businesses. Instead of buying things new, you can shop for used items and save a lot of money. As long as it is still in good shape, buying used office equipment and office furniture can be a smart way to save money. The same goes for vehicles. If you need cars or trucks, you could cut costs considerably by buying them used instead of new. 

Go Energy Efficient 

A small business can cut energy costs significantly by switching to energy efficient appliances. You might pay a little more upfront, but the expense will pay off over the life of the item. Even switching the type of light bulbs you use could be a good way to save money. Compact fluorescent bulbs use less energy than incandescent bulbs, but if you really want to cut your utility bills, you should switch to LEDs. 

Hire Online Freelancers

For some jobs, you are going to need permanent employees that come to the office. For everything else, you should consider hiring freelancers online. You can find freelancers to fill all sorts of roles and it can save you the costs that come with hiring employees. Even if it is just a virtual assistant to handle some of the administrative tasks, it will be cheaper than employing a full-time assistant.

Stop Paying for Office Space

Some businesses are able to manage a workforce that is entirely virtual. If this is the case for your business, you might want to consider getting rid of your office. If you could set up a home office, you won’t have to pay rent. If you still need an office part-time, you could consider a coworking space. There are also businesses that offer conference rooms and meeting spaces for rent on an as-needed basis. However, if you choose to go fully virtual for your business, you will also need to ensure that you have the correct tools to support remote collaboration. For instance, you may wish to explore alternatives to fireflies.ai to find the best solutions for meeting transcription, in order to maintain seamless communication and workflow among your remote team.

Review Your Subscriptions

Small businesses can have a tendency to accumulate subscription services over time. Maybe you signed up for a software subscription a few years ago, but you barely use it now. Instead of just auto-renewing these services every year, you should review your current subscriptions and consider how much you use the services. If something can be cut from the list, it will be a good way to save money. You might even want to do an audit to review all of these services once or twice a year.

Consider Your Phone Plans

When was the last time you thought about your phone plans? If you are like many small business owners, it was when you signed up for the plan. Evaluate your mobile phone plan and do some research to find out if there is something cheaper that will still meet your needs. If you have a landline, think about whether you really need it. If you do need a landline, consider switching to a VOIP provider.

Switch to Free Software

Paid software services can be useful, but you might be able to get by with free alternatives. Unless you can’t do without a function or feature that is exclusive to a paid program, you should switch to something you can use at no cost. Small businesses can find free software for everything from office suites and accounting to project management and marketing automation. 

The best part about many of these tips is that they can be implemented without having to make any major changes to the way your business operates. With that said, every business is different, so you will need to find the cost-saving measures that work best for your operation.