Main Street Finance

3 Ways For Small Businesses To Save Money

By Andrew

When it comes to owning and operating a small business, each penny saved can go a long way. Though it’s not usually wise for an entrepreneur to be known as “cheap”, it is smart to be thrifty.

Read on for three ways small businesses can save money and see a greater return on investment in the long run.

Consider the barter method

If you have a great product or service (which, hopefully you do!) think about doing an exchange with a company that provides something you need. If you run a flower shop and can’t afford an expensive marketing agency to promote your services, consider offering weekly floral deliveries and office plant maintenance to a marketing firm in your area. You might not have their top executive working on your campaigns, but you can probably get a talented new employee to help promote your business for low or no cost with a fair trade in place.

Save money on office space

Consider working from home or checking out a coworking space to save money on a formal office. When you think about the money that goes into rent, office supplies, and furniture, the expenses of an office really add up. With coworking space, you can rent a seat or a small office on a monthly basis and save significantly on overhead.

Take advantage of tech

There’s nothing that can save money quite like embracing technology. Rather than traveling for meetings, set-up a google chat. Or, instead of working together in a stuffy office, set up your company as a remote workforce and use programs like Sqwiggle to stay in touch with each other throughout the day. Google Voice and other phone-through-computer options can make conference calls cheaper than ever and free editing software like picmonkey and skitch can help you create gorgeous marketing materials at no cost. Be frugal when it comes to tech purchases. Spend where it matters but be thrifty wherever possible.

There will always be certain strategies that work best for your industry, but don’t dismiss these right off the bat. Even if it means implementing company-wide changes, relocating employees to cost-effective coworking space or sending them home to work remotely might be the kind of cutting-edge thinking that transforms your business and leads to serious profits.

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About Andrew

Andrew is a corporate finance consultant living in Los Angeles, specializing in distressed and bankrupt consulting. He helps clients review business plans and the general market and decide what steps to take next. He has a masters in finance. Andrew enjoys running and biking in the San Gabriel mountains, cheering for the San Francisco Giants and eating (but trying not to gain weight).