Bootstrapping a small business is difficult. Every penny that comes in and goes out needs to be properly managed to ensure your business stays afloat. The same money-saving savviness that business owners exhibit when they’re just opening their business seems to slowly fade over time.
Every industry has their own tips to save money, but there are options for every business owner to reduce their expenditures.
Sometimes, a few hundred dollars in savings is the difference between keeping the lights on and liquidating.
So, what methods are small businesses using to save money in 2018?
1. Co-working Spaces or Part-time Office Space
Startups are savvy because they have no problems with being mobile. Any small business can mimic this very concept with the rise of co-working spaces. A lot of these spaces have meeting rooms which can be rented and office space that can also be rented.
The idea is that you can bring clients to the space and present yourself in a very professional manner.
But you’re not stuck in a long-term lease with bills stacked to the sky. It’s the perfect compromise for a small business trying to save money. Experts agree that small business owners should try to remain mobile for as long as possible.
If you want to save even more money, you can dedicate a space in your home or apartment to your business.
When you truly dedicate this space, you’ll save money on office space expenses and can even write-off the expenses on your taxes.
2. Haggle and Bundle Your Insurances
Commercial general liability insurance can cost business owners $500 – $2,700+ annually. As the business grows and other factors get pushed into the mix, these costs can swell even higher. A lot of new businesses believe that the price is the price.
But you have room to haggle.
In fact, there’s a lot of money to be saved, and all it takes is getting an insurance quote from multiple providers.
You can always call the provider on the phone and say:
- Insurance Companies A and B gave me these rates, what can you do for me?
It’s as simple as that. Sometimes, the provider will come back with bundle options that offer significant savings over the long-term.
Never jump on the first quote given because it sounds reasonable. Shop around and truly find the best price. You might save hundreds or even thousands per year on your premium.
3. Advertise Strategically and Frugally
Advertising is key to bringing in new customers and clients. You need to advertise to find success in any business, but there are expensive ways to advertise and frugal ways. Two methods of advertising that can bring in leads and help you save a lot of money are:
- Speak at industry events. Public speaking is scary. You need to go in front of a crowd, speak and hope that the words come out of your mouth. It’s an intimidating process, but volunteers that speak at industry events will get free exposure, build their personal brand and their business brand, too. Again, this is all for free.
- Communal advertising still works. Advertising doesn’t need to be a solo venture. Communal advertising is great for small businesses, and this means advertising alongside other businesses in your local area. You might be able to share billboard space, mailing lists and distribution channels while splitting the costs of advertising.
Small businesses can reduce their expenditures dramatically, but it does take time and effort. Something as simple as telecommuting, analyzing financials to cut expenses and shopping around for the best price on anything can save a small business money on a monthly basis. Use this saved money to grow and expand your business.