Small businesses face a number of challenges from a variety of sources, because of their limited revenue small business success can be won or lost with a relatively small amount of money. In order to save money and help your business be more profitable this year these are some tactics to consider.
1. Eliminate Paper Wherever Possible
Electronic isn’t always better but in a lot of cases it is cheaper, electronic customer files require less storage space and are ready to be pulled up in a second. Electronic paychecks for employees remove the cost of printing checks and can be scheduled on a recurring basis so that they require less time and effort.
Even things that don’t seem like they would be easy to make electronic can be, like offering electronic invoices can allow your customers to choose whether or not to print and save your business money. Scanning documents and then sending out copies electronically is cheaper than making multiple hard copies for employees or customers as well.
2. Make Your Credit Cards Work for You
This tactic includes several different ways of making credit cards more efficient, so choosing a 0 percent balance transfer card and moving your debts onto it is an effective way to minimize the amount of interest that your business is paying. If your business doesn’t usually carry a balance, look for a credit card that has low annual fees and a longer grace period.
As well as avoiding paying interest, certain credit cards actually come with benefits. For instance, if your business flies people around regularly, consider getting the best airline miles credit card available. This way, when you make necessary purchases for your business you are also accruing miles for flights.
3. Buy Used or Lease Equipment
Equipment is a major expense for certain businesses and there is often no way around it. However, costs can be greatly reduced by choosing to purchase used equipment or lease, but both options have their pros and cons.
Used equipment is considerably cheaper to obtain than new but may have an extremely limited or nonexistent warranty, and it also typically requires a large, one-time purchase. Leasing may cost more in the long run since you never stop paying but it may also include costs such as maintenance and repair.
4. Prune and Target Your Mailing List
A mailing list can be an effective way for a small business to reach people but it needs to be properly targeted. Blanketing an area with advertisements is usually expensive and not worthwhile since most people won’t be interested, so instead, prune your mailing list to just the people you have purposefully selected and spend the rest of the money on your ad campaign.
To ensure that your ads are reaching the correct people, take advantage of the U.S. Postal Services’ offer to clean up your mailing list for free. They will correct addresses and add the 4-digit ending zip codes to your list, this may make your mailings eligible for barcode discounts and will ensure that your ads reach the people they are aimed at.