With the global inflation expected to reach 7% soon, making a profit while running a small business will get more difficult. Fortunately, there are some strategies you can use to save up in this struggling economy without laying off your employees. Using methods such as cutting costs from day-to-day tasks in your business can help you end up saving a lot in the long run. Here are three tips for saving money for a small business owner.
1. Research on Credit Cards and Banks
Banks add new charges frequently, like bounced check fees and ATM surcharges, which you can avoid by switching to a better bank. A lot of banks have offers and deals on their credit cards, and you can save a lot by choosing the right one for your small business. You can use credit card strategies like one of Rodney Warner, who suggests you use three credit cards for your small business expenses to maximize their benefits.
Additionally, switching banks may seem like a lot of work, but if you research, you might find a bank with a better offer that makes it worth it. You can save money while paying off your debt by switching your debt balance to a card with a 0% intro APR card when you change your bank.
Abuse or fraud is possible if you give your employees company-issued credit cards for business use. By activating pre-set limits and alerts on your credit cards, you can monitor your employee’s spending to ensure they’re not wasting your money. Consider using payroll debit cards to reduce administrative costs, such as printing checks when paying your employees. 60% of fraud incidents are of businesses paying their employees, so payroll debit cards also mitigate this risk of fraud.
2. Make Your Workplace More Sustainable
There are some tiny changes you can make that will not only save you money but also for the betterment of the planet. One of the best ways to save money is to just thrift and buy second-hand items you need. You can find second-hand stuff on Facebook Marketplace, eBay, and Amazon. In technology, you don’t need to buy the latest model for your business. Famous brands and big stores like Apple have dedicated sites for all their refurbished equipment.
Additionally, if you have any items you’re not using for your business, like old computers, chairs, and desks, you can sell those online to make some money. You can save a little money by reducing your paper use, and you won’t need to waste money on printing ink. You can do this by encouraging your employees to take digital notes, avoiding using printouts in meetings, and storing all the company documents on the cloud instead of printing them. You can also offer your customers digital invoices instead, eliminating the postage costs.
Additionally, you can save up on those high energy bills by avoiding small things around you that mark up your bills. One of the common ways you can hike up your energy bill is to keep appliances on when they’re not getting used, such as the printer and the coffeemaker.
3. Recruit New Employees Thoughtfully
One of the things you need to learn is the value of your time and how you can put your time to use better. You can avoid wasting your time by hiring freelancers for new tasks instead of wasting time learning them. Hiring freelancers can be cheap, and you can find them for every job on websites such as Fiverr and Upwork. For example, you can hire a content writer for your brand to write articles that can market your brand well rather than learning it all yourself.
If you pay your employees hourly, you need to analyze if they’re working at the primary times, primarily if your business is related to the service industry, where some times of the day are busier. Consider evaluating your staff schedule to ensure you don’t have too many employees during non-busy times.
Hiring energetic and smart employees with little experience can save you money and get good work if you’re employing new employees. One of the ways to do this is to offer a training program to high school and university students straight after graduation.
You can use strategies to save money during inflation as a small business owner. One of the ways to save money is to switch your bank to the most suitable for your business to avoid paying new charges. Using payroll debit cards can also help you save on administrative tasks and prevent fraud.
You can save money by making your businesses more sustainable by using less paper, buying second-hand goods you need, and saving on energy bills by turning off appliances when not required.
Learning the value of your time and hiring freelancers to do tasks you can perform will save you money in the long run. A method to save money is to ensure you don’t have too many employees working a shift at non-busy times of the day and hire fresh graduates with little experience who have lower salary demands.