For small business owners, the number one priority should be to save money. The unpredictability of working for yourself makes saving money for a rainy day (or rainy month) that much more important.
According to Bloomberg, 8 out of 10 small business owners fail within the first 18 months. Managing your funds properly and cautiously is critical as lack of or misuse of capita is one of the reasons why businesses fail today. While some tips will save more money than others, every little bit counts.
Here are some creative methods for your small business to save for a rainy day.
Give Website Builders a Try
If you’re on the hunt for a new website, give website builders a try. Hiring a developer can be costly to your business. Platforms like Wix, Squarespace, and Duda are great for any small business owners looking to increase their online exposure.
If you’re looking to build an online store, use a platform like Shopify. The platform offers solutions that help you build and run an e-commerce business with close to no technical skills or background.
For small business owners, marketing can get very expensive. Unless you already have large mailing lists or exposure from other means, it can cost you thousands before you see any return.
Reach out to local businesses to create a long-lasting working relationship with them. If you’re in good standing with any businesses in your area, you may even want to consider advertising alongside them.
If applicable, try sharing distribution channels, mailing lists, and suppliers with businesses that offer complementary goods and services.
Volunteer to Speak at Industry Events
A cost effective way to save your business money is to volunteer at industry events.Consider yourself an expert in the field? Try to impart that knowledge on others.
It’s a great way to get “free” exposure for both your personal brand and your business!
Stay Away from Full-Time Office Space
Thanks to technology, majority of internet businesses can now be run remotely. If you don’t work in retail, try to stay mobile as long as possible. Signing a lease on an office space can be extremely pricey for your small business.
If you have the space, convert an area in your apartment or house into your office space. That way, you can save double and claim part of your rent as a business expense.
Purchase Second-Hand Office Equipment
If and when you decide to move your small business into an office you should definitely look into purchasing second-hand office equipment. Equipment like monitors, desks, to office chairs can be found for a fraction of the price at used equipment stores.
New shiny gear may look fantastic but an empty bank account doesn’t. Remember—only spend on what you need and not what you want.
Use Freelancers and Contractors
These days, full-time employees cost a pretty penny. Yes, ideally you start to build out your workplace with motivated and loyal employees.
However, freelancers and independent contracts are the best buck for your gig—they’re already an expert in the field and will only charge you for tasks you really need done.
Onboarding and training an employee takes time and money. As a small business owner, sometimes you just don’t have the budget for that. You should use freelancers and independent contractors only until you’ve reached the point of stability.
Barter or Make In-Kind Exchanges
Thousands of years ago, the global economy depended on bartering. An old business idea as it may be, bartering is one of the best ways for small business owners to save money. The digital revolution has given rise to a committed cottage industry of barter facilitators such as Tradebank Canada and Calgary, BC’s eXmerce, which small business owners can consider if they’re tight on cash.
For example, if you and your small PR business belong to a barter network, you have access to regularly trade PR services for services that you need and don’t have—such as accounting services. This could even extend to your personal life as well.
If you think about it, nearly every other small business is in a similar position as you: strapped for cash. It’s in both of your best interest to barter for goods and services to help you save money in the long run.
It’s Not Rocket Science
If you’re a small business owner looking for ways to save money, look into building habits for budgeting. At Kashoo, we go into detail about monthly budgeting habits for small business owners, and tips to make your small business more profitable to help small business owners learn to save their money, grow their business, and hopefully take some work off their plate. Make sure to follow our Twitter account to stay up-to-date with our articles!