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5 top tips to help your business save money

 

Looking for simple ways to cut costs? These tips will help you make a noticeable difference to your bottom line.


1. Reduce staff costs

Without a doubt, having someone to help deal with routine tasks can greatly improve productivity. The rub is that hired help is often too expensive for small business owners.

Internships can be a real win-win: a student gets hands-on experience assisting you with marketing, accounting or administrative work and you get time-saving help for free.

Cloudsourcing a qualified remote worker is another cost-effective way to bring on some much needed support for administrative tasks.  At Cornish Accounting Solutions, we often act as virtual Financial Directors, allowing businesses to focus on what they do best while we sort the bookkeeping as and when the client needs it.


2. Think thin

Small business owners are often advised to trim down their offerings to a niche market. You can save money by applying that same thinking to how you do business.

For instance, subcontracting can allow a service-based business owner to keep a narrow focus on the work they do, while attracting more customers. Taking on more work and paying someone to do it at a lower rate than you charge your clients will increase capacity and your bottom line – while maintaining your focus on what you do best.


3. Network more

Forget expensive print ads and direct mail campaigns. You can save a ton of money getting the word out about your business by connecting directly with your target market:

  • Co-host an event with a business owner whose customers will be interested in what you do.
  • Connect with your local Chamber of Commerce.
  • Attend business networking referral events.
  • Run a contest on social media.
  • Sponsor a community fundraiser.

Our seminars and events are not just a great way to learn about changes to the business world, but are fantastic for meeting other people from the local business community.  Networking at trade shows and industry events is another great way to meet potential partners and customers, without breaking the bank on costly advertising fees.

For a full guide on effective networking, read our blog post here.


4. Embrace co-opetition

Often businesses buy in bulk to save money. Unfortunately, purchasing in volume can backfire if you’re struggling to maintain positive cash flow, and the cheap supplies you bought never get used.

A better strategy is to only buy what you need and to share costs with other small business owners. Co-opetition is becoming a buzzword for good reason. Forming alliances with businesses can lead to lucrative partnerships while collectively saving everyone some cash.


5. Save time with technology

If you haven’t yet made the leap, adopt cloud-based software to improve operational efficiency.

Try free collaboration tools like Google Drive too – also a great way to cut down on the cost of paper.

Use virtual meeting technology to save a small fortune on travel costs when connecting with clients in different time zones.

Sign up for a free trial of accounting software to see how automating routine tasks like invoicing and payroll can improve accuracy and free up hours from your schedule. Solutions like the superb Xero platform dramatically decrease the time spent on managing your finances, and pull information direct from invoices or bank accounts removing the need for tedious data entry.  We are award-winning partners, so we’re ideally positioned to advise you on how to get the most from these options.


Final tips

Review your business expenses on a regular basis to track rising costs and to find more ways to reduce unnecessary spending.

A few final – and costly – pitfalls for busy small business owners to avoid:

  • Always pay vendors and lenders on time to dodge late fees, interest and a poor credit rating.
  • Shop around for the best deals on everything from software and financial services to office supplies and inventory.
  • Hold off on renting space for as long as possible. Encourage staff to work remotely, meet clients in coffee shops and remember: home office space is an eligible tax write off.

What will you do differently to start cutting costs for your small business today?  

Of course, these tips are just the tip of the money-saving iceberg.  If you want detailed professional advice that focuses on your business, contact us at your convenience.  

 

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