Five Ways New Business Owners Can Save Money

5 tips for cutting business expenses

Starting a new business is a gamble, especially in the current economic climate. You might have a winning concept, excellent leads and the drive to succeed, but how do you keep your business afloat until the money rolls in?

1. Review Your Bills. There’s no need for both landlines and mobile phones – cut out the landlines and call clients from your office for free with Google Talk. Your insurance plan is another area in which you could cut costs, at least temporarily. Go with a plan that offers a higher deductible to cut monthly premiums.

2. Shop Smart. Planning ahead when it comes to shopping is critical. Look out for sales or buy in bulk to minimize costs – act like you would at home! Also, don’t let office supplies run out completely before replacing them””you’ll then be forced to buy something in a hurry, often at a higher price. The same goes for marketing and printing, which always cost more if the services or shipping must be done quickly.

3. Lease a Small Space. If the cost of your lease is too much to handle, speak with your landlord about lowering the price or moving into a smaller space in your building. If you only have a few employees or contractors, you may even consider working out of your home until your business grows to a point that leasing an office space is an affordable option.

4. Hire Contractors. While you may need some in-office staff, if your business can function with several contractors who can work from home, you won’t need a large office space, and you won’t have the added expense of providing benefits for those employees. With freelancers, you only pay for the services you need – perfect!

5. Use a Vehicle Tracking System. These not only inform you of where your company vehicles are located but also help you oversee the behaviour of your employees on the road. You can also monitor speeds to determine if your employee is driving recklessly or if they should be driving slower to cut fuel costs.

About The Guest Author:   Jack Oldham is a journalism graduate blogging on behalf of Teletrac, whose vehicle tracking devices can help businesses of all kinds cut their costs.

Cutting Expenses Photo via Shutterstock

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