While most startups and small business owners focus on driving sales, lowering your expenses is just as important when you’re trying to achieve or maintain profitability. Reducing your spend whenever possible is vital to your company’s success. In fact, lack of or misuse of funds is the primary reason why businesses fail.
While some ideas will save you more money than others, every little bit counts. Here are five relatively simple money-saving tips for startups and small business owners.
Lease Furnished Office Space
Furnished executive suites and offices are perfect for entrepreneurs who have outgrown their home office, but do not have the time or money needed to set up a new space. If you’re not ready to commit to buying office furniture, look for a suite that is already equipped with desks, chairs, files and conference rooms.
Buy Used Office Equipment
If you decide to move into an unfurnished office, consider buying gently used equipment to fill the space. Depending on the type of business you own, your used purchases could include anything from desks, chairs and refurbished technology to vehicles, machinery and storage bins. To buy items at a fraction of the cost, look for going out of business sales on social media and in the newspaper, or check out used equipment stores.
Choose Your Location Wisely
Not all cities are ideal places to start and grow a business, so you’ll want to consider commercial rent, taxes and labor costs carefully when deciding where to open your business. For instance, in 2019 office space in Boston is going for $30-40 per square foot, whereas office space in nearby Wakefield MA is less than $20 per square foot, including utilities.
By emailing receipts and invoices to your customers, instead of mailing printed hard copies, you can save on ink, paper, stationary and mailing costs. Likewise, using paperless methods to receive invoices and bank statements, and pay your bills, will help save you money. In fact, most banks and utility companies offer a discount if you choose to go paperless. When you must print, use the double-sided feature, recycle waste paper for notes, and shrink fonts and margins.
Get Creative with Your Marketing
Traditional print, radio, television and billboard advertising can get very expensive for small business owners, and direct mail is challenging if you don’t already have a large customer list. On the other hand, paid social media advertising on Facebook and LinkedIn is significantly cheaper, and far less costly to produce. Word-of-mouth marketing is another cost-effective alternative, and it can be encouraged by implementing referral programs and soliciting positive reviews from customers on Google, Yelp and other industry-specific online directories.
More Tips for Startups & Small Business Owners
Starting your own business is challenging, but saving money doesn’t have to be. Looking for more tips for small business owners? Check out 7 Tips for Planning a Highly Productive Meeting or these 5 Workplace Amenities that Employees Actually Want.
If you’re considering office space near Boston, check out The Lakeside Park. We offer build-to-suit office space, as well as furnished executive suites and short-term office rentals. To learn more, request a tour, contact us for more information, or call (781) 557-5555.