Five Post-Pandemic Cost-Saving Strategies for Small Business
As Canada transitions to a post-pandemic state, every business owner is trying to find a way forward. Here are 5 cost-saving strategies for small business.
Running a small business can be complicated and if you are not careful, costly. Ensuring that operating costs are as low as possible without sacrificing the quality of your business or the livelihoods of your employees is a must, especially during these strange times. The world is now slowly getting back to a new normal, meaning that it may be time to consider a wider variety of cost-saving strategies. Here are five proven cost-saving strategies for your small business.
Monthly subscriptions and other costs: do you need them?
Is your small business subscribed to any software that you rarely use, or don’t really need? Do you have a subscription for TV in your waiting room? Is there a way to bundle your company’s phone and Internet plan, or maybe even find a cheaper alternative? By taking a look at the services and subscriptions that your business is using, you can see just how much per year you’re losing. Some services may be necessary, of course, and some monthly subscriptions can seem cheap, but even a few dollars a month can add up to a large sum over the course of a year.
By eliminating software you don’t really need, you can save hundreds per year. And if you can’t eliminate certain software, there just may be a cheap or free version available. If you outsource your cleaning, you may be able to handle some cleaning tasks yourself and reduce the need to hire someone else to do it for you. Reception areas often have magazines for customers to read, but can you cancel that subscription and rely on free donations instead?
Go hunting for great deals
Most supply vendors can offer discounts and deals, especially for long-time customers or those who buy in bulk. It’s worth shopping around to find the lowest prices and special discounts that you can get by buying at a certain time, or by making a payment early and in full. Some software subscriptions (provided you need them) offer a discount when you pay for one full year versus monthly. Buying supplies in bulk usually results in a lower price per item, and if you’re purchasing supplies your small business uses regularly, these savings can add up.
Don’t forget to look at your insurance and bank accounts. Talking to your agent can result in you finding better deals and rates for insurance, and financial institutions vary when it comes to costs and fees. The same goes for credit cards, which also have varying interest rates.
Office space can be expensive
Paying for the use of office space can raise your small business’s costs quickly. A great thing to try is to see if you truly need what you’re paying for. Have you and your employees tried working from home recently? If it worked out well and you were able to find all the online tools you need to run smoothly, you may even be able to consider cutting out the office space altogether, along with the associated cost.
If you can’t cut out the office completely, reducing the space that you rent or moving to a smaller location can also help to greatly reduce your costs. It may be possible to allow your employees to work at home at least some time, reducing your need for space.
Review your marketing costs
Most marketing costs money, but it’s necessary to your small business and perhaps even more so in a post-pandemic world. Taking some time to sit down and review what’s providing a good return on investment versus what is not can help you identify which tactics are not working well, and which tactics are paying for themselves or bringing in a profit.
Online advertising is often more effective than paper media now, and making good connections with your customers via email lists and social media can go a long way to ensuring business for a long time to come.
Only travel when necessary
It’s likely that you and your employees haven’t been travelling much during the past several months, and you may have seen the savings from cutting back on travel already. But in the post-pandemic world, it may be a good idea to avoid unnecessary business trips and rely more on technology for employee trainings, conferences, and other meetings. Many programs exist to allow for people to connect online. By switching to online meetings and trainings when you can, your small business will enjoy cost savings that otherwise would have gone to travel.
Looking for more post-pandemic cost-cutting strategies for small business? Read part two in the series!
If you’re looking for a skilled, experienced accounting partner who can take your business to the next level, contact us today to get started.