6 Money Saving Tips for Small Businesses

Even in the best of economic times, one of the biggest challenges small business owners face is the constant need to cut costs and utilize available funds more effectively. Being that many entrepreneurs are so caught up with the day to day demands of running their businesses, they fail to recognize the little details that can add up to greater profitability.

Here are six money saving tips for small business owners which, if properly implemented, could lead to earlier and more sustainable success.

1. Know your limitations: Although you may want to, you can't do it all. And in some cases, you shouldn't. Face it. If you are better at carrying out a business plan than crunching numbers, then you should consider hiring an accountant. At the very least, you should take a tutorial on how to better manage your cash flow on the computer, utilizing some of the outstanding and user friendly business accounting software tools now available. By gaining a clearer picture of how money is actually coming in and going out, along with gaining a greater understanding of fixed and variable costs and break-even points, you'll be able to recognize and address problematic cash flow areas more readily. Remember, no matter how well you may think your business is doing, the black and white numbers never lie.


2. Go Virtual: As business growth presents new challenges, such as servicing your client base better or performing some other task that is beyond your capabilities, you're going to need extra help. Hiring virtual assistants is one approach you should seriously consider for two main reasons. The first is that you can hire help temporarily, on an as needed basis. The second is that, due to the current job market, you'll be able to find and attract qualified people to assist you at very reasonable rates. Should you have a need for advice and expertise in the area of drafting legal contractual agreements or other specialized documents, consider hiring a virtual attorney. Unlike traditional brick and mortar lawyers who generally charge higher fees and may require monthly retainers, virtual attorneys will save you money by working on a per job basis.


3. Greener is leaner: If you haven't taken advantage of green technology you've been missing out on serious savings by using energy saving items and equipment. If during the course of your day you find yourself performing multiple tasks like copying, faxing, and scanning you should consider purchasing an all-in-one machine. Not only are they less expensive than their stand-alone counterparts, they take up less space. Another way to save serious money is to purchase recycled ink and toner cartridges. Technologically, if you are tethered to a landline you should seriously consider using your cell phone for making and receiving business calls. You'll save even more by using Skype or a VOIP (Voice Over Internet Protocol) phone service to make local and long distance calls. Depending on the service you use, your clients will never be the wiser.


4. Cultivate college contacts: Your local college classrooms are teaming with students eager to gain real world experience in their chosen or related fields of study through internship programs. The problem is, they don't often know what opportunities, if any, are available. By contacting the department heads in fields of study that your business would best serve, i.e. Business Administration, and expressing a willingness to participate in an internship program, you may be able to take on some eager new employees who are willing to work for little or no pay to gain practical experience and college credits. The other benefit of internship programs is that, while offering a service to the community, you are also cultivating relationships with students who could end up being future full- time employees.


5. Sublet unused space: Look around your office. Are you paying rent on more space than you need? Chances are, by making a few phone calls you could rent that extra space to another budget conscious entrepreneur. You can save even more money by sharing the cost of leasing large equipment and buying basic business supplies with your new business tenant.


6. Co-working: The slumping economy has left many landlords faced with serious vacancy issues. As a result, the concept of co-working, or renting out office space to up and coming companies on an as needed basis has become attractive to both landlords and budding entrepreneurs. By co-working, if you need to hold a face-to-face meeting with a client you can convene in a nicely furnished office, rented for the afternoon. Not only will you forgo the expenses that accompany a traditional business lease, such as utility bills, and renters insurance, you'll also save on high-end office equipment like copiers which are often included with the furnishings.

Vince Conklin is a freelance writer who specializes in writing about business loans. Vince has helped many small business owners find the perfect small business loan to help their business reach the next level.