As a small business owner, one thing will always weigh heavy on your mind; how to keep expenses in check so you don’t exceed your slim budget. Read on to learn three easy, effective ways to save money on your small business.
1. Ship Smart and Save
If you have a direct mailing list or are highly reliant on shipping to fulfill orders, the costs can be a huge financial burden. However, there are lots of ways to save on shipping that you could be missing. Here are a few options to consider:
- Set up a business account with any major shippers for discount pricing
- See if you can order free supplies from your shipper of choice
- Send smaller mailers with large shipments to save on overall cost
- Evaluate whether flat-rate shipping is an economical option for you
- Find out if you can get barcode discounts by using zip + 4 numbers on outgoing mail
- Make it a habit to clean up your mailing list to avoid sending to dead addresses
Incorporate any or all of these tips to save money on shipping costs!
2. Collaborate with Fellow Small Business Owners
No one understands the plight of sticking to a tight budget better than a fellow small business owner. That’s why it’s invaluable to join a small business or entrepreneur networking groups and learn from like-minded people.
You’ll get lots of ideas on how to run your business as efficiently as possible, and how to stretch every dollar as far as it can go - especially from business owners facing challenges similar to yours. You may even find a willing connection who can help you with a specific need, like marketing or logistics. Just be prepared to offer your time or services in exchange for their help and advice!
Joining a local small business group often has the added benefit of giving you access to discounts on things like travel, software services, training seminars, and other things you regularly use. Entrepreneur also recommends forming alliances with small business owners in your area to buy products and supplies in bulk to reap money-saving discounts.
3. Don’t Overlook Deductions, Tax Deadlines & Self Employment Costs
Taking advantage of IRS tax deductions each year can help you maximize your return, which in turn can help you offset daily operating costs. As a small business owner, QuickBooks suggests that you always save your receipts. Startup expenses - including home office rent or mortgage, mileage, software costs, supplies, and more - are often deductible. Another way to save money is to make sure you file your state taxes on time, to avoid penalties and fines.
On another note, working for yourself is expensive, and it can be easy to forget the impact self-employment taxes have on your bank account balance. Be diligent, and don’t forget to factor employment taxes and costs into your overall business budget.
Implement these three easy money-saving tactics into your day-to-day operations to maximize your small business budget and do more with your money.
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