Money Saving Tips for Small Businesses

Money saving tips

Work from home

If you and any other members of staff are prepared to work from home, you immediately eliminate the need to pay for office space or additional furniture.  There is also a growing trend within the business world known as BYOD, which stands for Bring Your Own Device, where small businesses avoid forking out for expensive laptops and software by asking employees to use their own; why pay to purchase what you already have access to?

Be wary of giving credit

Offering or extending existing credit can seem like a good way to entice customers into a deal and to keep them sweet but when there isn’t a huge flow of cash in the business, you need money to be coming in ASAP. The longer a client takes to pay, the harder it often becomes to finally get them to pay what they owe and encouraging them to delay payment by offering unnecessary amounts of credit won’t help matters.

Take what you can afford

Additional funding from an external source is often crucial to the survival of a young and growing business but you should never take on more than you can afford to pay back. You should also strive to pay off debts as quickly as possible before seeking any more money, as taking on new debt to pay off an old debt simply results in a vicious cycle, especially when loans can now come loaded with extra charges like PPI to drive up the bill.

Save on advertising

If you have fliers, promotional offers or other forms of advertising you want to distribute to businesses and existing customers, save on the expense of sending them individually by including them with the likes of invoices and receipts for previous transactions. With this simple method, you can cut postage costs in half. Another great way to save on the cost of advertising is to use social media sites. Facebook and Twitter grant your business the opportunity to reach millions of users completely free of charge.

Ask for help

Every business needs help sometimes and there is no shame in asking for it. Be it a loan from a loved one to tide you over in tough times or advice from a more experienced business professional; it can make all the difference. Establishing good links with other local businesses is also always a wise move, as that way you can generate a system of mutual support where you can exchange goods, services, helpful tips and even customer mailing lists to help each other out. Nothing in life is free but if you can pay in support rather than cash, this is always advisable.

About Julie Cheung

Julie Cheung is a writer for Gladstone Brookes, a UK-based firm specialising in reclaiming money from PPI policies that were mis-sold by banks.