Top 15 Money-Saving Tips for Small Businesses

Ryan Patrick

• 7 min read
Top 15 Money-Saving Tips for Small Businesses

As a small business owner, you must spend your money smartly, especially when starting, because your resources are tight, and you must keep the venture afloat. Cutting the budget is necessary, and small businesses may seek innovative ways to do it without interrupting operations.

Traditional ways of cutting costs, such as renegotiating contracts or trimming overhead expenses, may be your priority. Still, there are lesser-known and overlooked money-saving tips that can help you pocket more of your hard-earned money.

Incorpuk offers you 15 practical ways that you may not have considered as top money-saving tips for your small business. Keep reading and unearth the hidden treasure to help you achieve financial sustainability in your business.

Top Money-Saving Tips for Small Businesses

Before embarking on a money-saving exercise, write down your income and expenses. This will help you know areas of your start-up company where you can reduce cost, allowing you to set realistic goals. Here are the best tips for saving money for our small business.

1. Outsource

Outsourcing is among the best ways to save money for your small business. When you outsource, you can meet experienced freelancers who will help you accelerate your business at an affordable price. You don't need to do everything for yourself, and bringing experts through outsourcing will allow you to focus on critical business matters.

However, when working with freelancers, give them in-depth information about your project so they may understand what is expected of them to produce top-notch output. If you're wondering where to get freelancers, you may check on these job boards

  • People Per Hour
  • Upwork
  • Freelancer.com

2. Grow your Network

Growing your company network is essential; whether it's your prospects, financial advisor or a partner, these networks are vital for company growth. Building relationships helps accelerate your small business growth at a low cost.

Places where you can initiate these relationships include platforms like Medium, LinkedIn, and a subreddit in your industry. When reaching out to the people on these forums, be polite. Also, open up on what you can offer and benefit them. Answer questions on these forums; it's a way of building credibility, and you may get someone helpful. Always offer help to others, and don't link spam. To start a relationship on LinkedIn, start by sending a connection to an individual.

Here is the best way to build relationships on LinkedIn:

  • Brief a person why you want to connect
  • Look for commonalities
  • Respect people's time
  • Use your offline approach online
  • Always reciprocate

3. Implement Digital Marketing over Traditional Marketing

As more people spend most of their entire time online, it's advisable to maximise digital marketing strategies over traditional marketing. This is because you will save money on advertising since printing and TV advertising are expensive. More so, traditional advertising doesn't determine the return on investment.

With digital marketing, you can view the details of your ads and how many leads they produce at a specific cost. It also allows you to pump more money into the right advertising opportunities to increase sales and save you money.

Remember to track your metrics and analyse what's working best, allowing you to focus your energy and resources on the strategy to help your small business grow while saving you money.

4. Analyse and Reduce Technology Cost

If you reduce technology costs, you will save significant money without compromising productivity. You can start by simplifying software licensing and using cloud-based storage solutions. Ensure you stay up-to-date on new technology and continually evaluate expenses for a more cost-effective and efficient operation.

Also, take advantage of free tools and apps to help you save money. However, familiarise yourself with these tools to offer you the best solutions. Let's see some of the free tools that may help your small business.

  • Designing's tools:
  • Canva: this is a great design tool
  • Father icons: open-source icons
  • Figma: a collaborative design tool
  • Dribble: get the best designers
  • Marketing's tools
  • Hunter: this tool will help you find email addresses
  • ChatGPT: it creates content in seconds
  • Snov: sales automation software
  • SparkToro: audience research tool
  • Tally Forms: a tool to create for your website
  • Weld: it connects your Google Sheets to your ad network
  • Finance tools
  • Slack: internal messaging tool
  • Notion: a tool great for notes and business tasks
  • Cocofax: a reliable online fax service
  • Whimsical: an app for collaborating with your employees
  • Development tools:
  • Sublime Text: an ideal editing tool
  • Github: a software builder
  • VS Code: helps to build and debug code
  • Vercel: fronted development software

5. Review all Subscription

Review your monthly and annual subscriptions, for example, water bills, software, insurance waste collection costs and other business energy bills such as the tariff you're on. It's beneficial to periodically reassess the expenses tied to your subscriptions, as some may no longer serve their purpose or remain underutilised. Evaluating the return on investment (ROI) of each subscription is vital.

ROI isn't solely about monetary gains; if a software subscription has been inactive, there's no obligation to retain it. Adjusting or cancelling unused subscriptions can lead to significant cost savings in the long run, allowing you to allocate funds more effectively within your small business. This reallocation of resources can foster efficient business growth.

6. Negotiate with Suppliers

Negotiate with your suppliers to get better pricing terms. In most cases, small companies accept prices offered by suppliers without negotiating for better terms. So start by contacting different suppliers, comparing prices, and then asking them if they can beat prices offered by other companies.

7. Cut Office Costs by Embracing Remote Working

Since COVID-19, companies embraced remote working, which worked perfectly. You can embrace remote work, which is cheaper than office work, while your employees stay productive. With advanced technology, you can make online calls, manage projects, and collaborate. You may spend a lot in the office, but the same work can be done remotely.

Review your set-up, and if you can go remote while maintaining your business service levels, then it's highly recommended. This will reduce your business expenses and improve your employees' life.

8. Buy Used Equipment

Although most entrepreneurs overlook buying used equipment when starting a company, second-hand equipment can save up to 45% of the equipment's original cost. For example, used computer equipment will work perfectly and reduce equipment costs.

If you're looking for refurbished computer equipment, look at:

  • Dell Refurbished
  • Laptops Direct

As a small business, you will save money and use it in other areas while having high-standard equipment.

9. Use Energy-Saving Devices

An office uses a lot of electricity on lights, around 40% of your electricity bill. If you aren't using energy-saving bulbs, replace them with LED light bulbs. They are environmentally friendly and cost-effective thanks to their low wattage.

Additionally, install movement sensors in rooms using a lot of light because employees may forget to switch off the lights after working hours, leading you to pay hefty electricity bills. The sensors are easy to install and budget-friendly.

10. Ask for Discounts

As a small business owner, you may save much money by negotiating with your vendor for better payment terms. You can ask for a discount for early payments or bulk purchases or seek another vendor offering better pricing. Negotiating it can save your small business a considerable amount of money.

11. Hire Smart Employees

Don't always hire people with previous job roles; go for smart people seeking to start their career in your company. This will save you money on employee salaries and get a person ready to learn and produce quality work in your business.

Furthermore, this approach enables them to progress alongside your company, accelerating their professional growth, which is a significant draw for any employee. As an employer, you reap the benefits of having a dedicated, high-performing team member who contributes to scaling your business to new heights.

Rather than focusing on a candidate's previous job title, assessing their overall skill set and what they bring to the table is essential.

12.  If you're not using it, Sell it

If you have printers, computers, desks, etc, that you're not using, sell them online. This will help you create more space and put money in your pocket.

13. Go Paperless

Going paperless is suitable for your business and environment. There are different ways you will scale back paper use. Adapt digital note-taking, and avoid printing out during meetings. You can introduce hot desks rather than fixed desks.

14. Look to your Small Business Accounting

If you aren't an accounting expert, hire a professional or use accounting software such as FreeAgent. A professional accountant will provide vital business information and help you understand the claimable allowances and tax relief benefits available to your small business.

They will also ensure your business and personal finances aren't mixed and your bookkeeping is correctly done. They will develop correct tax calculations, and all deadlines will be met. This will help you save money and evade hefty penalties for missing tax filing deadlines.

15. Switch Banks

Many individuals think switching banks is a cumbersome process. However, in reality, it's often not as daunting as perceived. Moreover, you may find better deals elsewhere upon examining the associated fees. Conduct thorough research and consider transitioning to a bank that aligns better with your personal and business needs.

Do you need help forming your company in the UK?

At Incorpuk, we will guide you through the company formation process and help you file your confirmation statements to help your business stay compliant. Whether you're a UK resident or a non-UK resident, our team is ready to provide guidance and help you establish your company in the UK.

Winding up

This comprehensive list of money-saving tips for small businesses offers invaluable strategies to optimise financial efficiency and foster growth. By implementing these tips, businesses can navigate economic challenges, streamline operations, and maximise resources. From outsourcing to embracing digital marketing and negotiating with suppliers, each suggestion presents an opportunity to enhance profitability and sustainability. Embracing these insights will empower small businesses to thrive in a competitive landscape while achieving long-term success. Do you have any questions on money-saving tips? Kindly reach out to our team for expert advice today.