June 30, 2016
Cost Cutting Tips for Small Businesses [Infographic]
Editor’s note: This is a departure from our usual content, but we felt it to be a very worthwhile and helpful departure. Hope you agree!
Cost Cutting Tips for Small Businesses
Most small business have a small profit margin, and all small businesses want to maximize that margin. By following these tips, your business might be able to do just that!
1. Make sure you’re claiming every possible tax deduction.
Small businesses are eligible for numerous tax deductions, in a legal attempt to incentivize entrepreneurship. Make sure to do your research on these, and if you have the means, hire a tax professional to do it for you. Usually the professional will save so much that his or her cost will be offset.
2. Manage your invoices using an online platform that tracks reporting
An invoice platform like Invoice2Go, Freshbooks or Zoho allows you to save significant time invoicing clients and customers, which will allow you to focus more time on growing your business. The platform has an internal reporting feature that allows you to track expenses and profit over time that’s really intuitive. They also have a free trial feature.
3. Don’t skimp on contractors
Often, business owners who use platforms like HomeAdvisor will try to find the cheapest contractor available, thinking that this is the most profitable option. What they’re failing to realize is that the contractor who charges double that hourly rate is likely to get the job done more effectively and in less time. Focus more attention on the reviews than the hourly cost. You want a job well done and often the overall price for that is barely more than the cheap contractor when you factor in time and quality.
4. Invest in employee training
One of the biggest costs for small businesses is training new employees. If you really commit to this task, you can improve employee retention which will ultimately help your bottom line. This is a scenario just like the contractors one where the upfront cost is higher but the long-term cost is lower. Don’t stop the training after the first week (or month). Make sure to continually train your employees on all aspects of the business so that they can see themselves having a career with your company rather than just a short-term stint.
5. Do your advertising all online
Most small business owners don’t realize how much more cost efficient it is (depending on your market) to conduct advertising online on social media and other platforms. For the price of one newspaper ad in your local paper, which may run you several hundred dollars, you can reach thousands more people doing Facebook advertising for example. Every dollar matters, and this way you’re getting more views for each dollar you spend.
Bill, Track & Get Paid Notes
1. Not getting invoices out in a timely fashion? Bill the customer immediately when the work is done.
2. Not getting paid on time? Track whether the customer has paid so you can follow up with them.
3. Slow payment methods? An online invoice such as those that can be created on Invoice2Go, Freshbooks or Zoho, makes it easy for customers to pay with credit or debit anywhere.
Kate Laren is the community coordinator at Invoice2Go
Lead image: Copyright: ‘http://www.123rf.com/profile_dskdesign‘ / 123RF Stock Photo
Note: This is not paid content, nor is there any affiliate arrangement.
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