Every small business owner wants to cut down on costs and save money for their small business. Why spend your hard-earned cash when you don’t need to?
But if you’ve ever sat down and tried to cross off items on your list of expenses, you know that cutting costs is easier said than done.
Looking for tips on how you can cut costs for your small business?
Well, we asked entrepreneurs just like yourself: “How do you cut major costs for your small business?”
Here’s what they had to say.
22 Business Leaders Explain How They Cut Costs
1. Ship It On Your Own
“If a customer is nearby, to cut shipping costs, I’ll personally deliver the item to them. Surprisingly, a majority of my customers are okay with it—and it puts a face to my business. I also cut costs by using Shopify to build my website, instead of building my website from scratch. I saved a lot of upfront costs and time trying to figure out website logistics.”
– Kathy Juana, Owner of Mission Lane.
2. Think Outside of the Box
“We look to be more cost-effective in areas all over the business, particularly in places that might not be obvious starting points—but save us a fortune in the long run. For example, we put in cost-effective lighting and detection systems all over the company. Revamping everything to LED was costly, but over a period of time it’ll mean massive savings in our electricity bills. When you’re trying to cut unnecessary costs, look at everything possible—those pennies build to points, and the bounds build to thousands.”
– Darren Green, Founder and CEO of Poles Direct.
3. Get the Burger, Not the Steak
“One of the easiest ways to cut costs is on food and entertainment. When times are good, those traveling on behalf of businesses tend to treat themselves to food and entertainment that they wouldn’t if it was on their own dime. It’s very easy to rack up several hundred dollars of expenses when traveling, even when you’re not necessarily hosting a client. To cut costs, implement a company policy towards food and entertainment expenses. Go over expenses with employees, and let them know what does and doesn’t qualify as a business expense.”
– Marc Prosser, Co-founder and Managing Partner of Fit Small Business.
4. Track Your Taxes
“As a small business owner, my biggest corner cut is paying quarterly taxes. This helps financially because I know I owe a specific amount every 3 months and, like clockwork, all I need to do is send in a check! (Or two checks, to be exact.) When I had to pay my taxes last year, my business was back to a near $0 bank account because of what I had to pay in taxes. Now, I’m able to keep track of my finances without breaking the bank every April!”
– Maggie O’Keefe, Owner of MTM Inc.
5. Buy in Bulk
“Analyze what your business purchases on a consistent basis, and buy those products in bulk. This dramatically reduces the cost per unit you pay. For example, our company has been able to lower the amount we spend on our equipment supplies by negotiating with our vendors and shopping in bulk.”
– Bob Ellis, Founder & Owner of Bavarian Clockworks.
6. Use the Right Tools
“Whether you’re restructuring or starting a new business, there are a variety of new tools and platforms that can help make your company more efficient and cost effective. Some of my favorite tools to use for my business are Asana, Shullfrr, Saleswhale, DueCourse, and Infusionsoft.”
– Bonnie Halper, Founder of StartupOneStop.
7. Outsource It
“I’m a business owner, not a graphic design artist. I’m an entrepreneur, not a programmer. So I utilize freelancers to do the jobs that I can’t do or don’t have the time to do. A freelancer’s reputation is on the line for every project, so I’ve found that they do great work. And, for the most part, I’ve found that local freelancers provide quick turn around times for reasonable prices—so they’re a great resource for small businesses!”
– Kelsey Bye, Owner of Spots on a Leopard.