6 Money-Saving Tips for Small Business

From the archive. This article was published before Small Business Bonfire changed ownership in September 2024.

You don’t have to go off the deep end and turn into Ebenezer Scrooge just to save money in the day-to-day operations of your small business. We’ve got tips that will help you save by cutting back on unnecessary expenses within your company. No need for drastic measures like forcing your employees to work by candlelight with a single lump of coal.

1. Never buy on a whim.

Sometimes it’s easy to get distracted by how convenient the latest tools and electronics can be. What you really need to focus on is the bottom line. Will making the purchase be a sound financial decision for your small business? If not, walk away. Make it a habit to contemplate major non-emergency purchases a minimum of one week before you buy.

2. Practice your negotiating skills.

So many times you can get better prices from suppliers if you just ask. It’s worth it to read up a little on the art of negotiating and understand the psychology behind it, too. Not everything is negotiable, of course. But it’s pretty easy to recognize when there’s an opportunity to save.

3. Shop used or buy older models.

It might seem tough at first, but you really can operate a business without being an early adopter. Whether buying a company car or a computer, you can get everything you truly need for a better price if you avoid the temptation to buy the latest and greatest model just because it’s there.

4. Track office supply spending.

You don’t have to be a tedious penny pincher to make this work. Just look over your supply receipts and learn to recognize where you have opportunities to save. For example, if you see you’re spending a fortune on sticky notes each month, consider investing in dry-erase boards or other reusable products for taking notes and messages.

5. Cut back on utility consumption when the business is closed.

Just like at home, you should be automatically adjusting the thermostat when your building is empty to save money. And remember that little things add up. From installing a motion light in restrooms to buying office space with plenty of natural light, you can reduce how much you pay on utilities every month.

6. Spend less on postage.

Many of us already take advantage of email and electronic newsletters to communicate with customers. But sometimes it’s necessary to send important information via snail mail. Take advantage of bulk delivery services whenever possible. You should also plan ahead to reduce the need to use overnight delivery services. One-day delivery can cost your business a small fortune in just a few months time.

In most cases, saving money is about taking the time to track and evaluate your expenditures. Put aside a little time every month to look for places where you can save. You can also ask your staff members for suggestions to help make business more efficient and less costly.

Have you recently implemented money-saving measures in your small business? How did you do it?

Picture of Chaz Michaels

Chaz Michaels

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