4 Ways To Lower Your Costs As A Small Business Owner

When you run a business, especially when you are a small business entrepreneur, you have to make ends meet and work hard to keep going and growing every day. To get where you want to be, you need to be fiscally responsible and keep your costs down. Here are some helpful ways to get it done.

Go Paperless

One of the biggest expenses many small businesses face is in the financial department. You have many moving parts that require payment to keep things running. In addition, your customers are buying your products and services. All of this requires detailed accounting, but it does not require a lot of unnecessary physical paperwork.

Look beyond the old-fashioned paper bill or invoice sent out via regular mail. Save yourself time, money, and resources by using an extension in QuickBooks to accept ACH payments. This process will make your payment system almost seamless. Your employees and customers alike will appreciate the ease of use and the environmental factors involved in eschewing paper statements that will be disposed of once their utility is complete.

Use Local Resources

Lower your costs by sourcing locally. Assess your supply chain and look for raw materials you can pull in from local companies. This is a great way to reduce transportation costs by getting the materials you need to create your product and lower your carbon footprint.

Once you find a local connection for one resource, you might be approached to provide a material, product, or service for a nearby merchant, and thus a new relationship is born. Look close by before you begin branching out to see what kind of financial benefits and savings you may come across.

Rethink Transportation and Logistics

If you provide service or delivery to your surrounding area, rethink how you make it happen. Delivering on demand or immediately as orders are processed might provide instant satisfaction for your consumers, but will eat into your profits through higher fuel costs.

To tackle these logistics, try to group deliveries based on geographic location. Inform customers both at the point of purchase and on the FAQ page of your website so they know when to expect delivery of their purchase. To break even or recoup costs, consider offering expedited shipping options for a fee. 

Reward your customers for picking up their purchases if they live in the local area. Offer them an extra cookie or bagel if you have a bakery. Another incentive might be a discount on their next purchase or a mobile app rewards program. The possibilities are endless. 

Finally, as part of your initial business plan as you are funding your endeavor, or as profits afford you more options, think about what type of delivery vehicles will be the most realistic in terms of longevity, fuel costs, and maintenance over time to save you money.

Become a Part of the Community

Look around and physically assess the other businesses in your area. Approach them in person. Have a chat with the owners as well as the workers to get a sense of how they do business and their overall personal and professional personalities. Determine if these are companies and people with whom you can align your business and professional goals. Perhaps you can join together for some fun sidewalk sales or charity events to do good things and bring in more customers.

Next, look to your local Chamber of Commerce. They are an invaluable resource for finding small business information, networking, and making connections. Often, they hold mixers and mentoring sessions to introduce different business leaders to one another and help form bonds. Put them on your calendar, and be sure to attend. While you may not need the skill set or the resources that the person at the next table has at this moment in time, you never know when the idea to collaborate will come to light. Other small business owners may have experienced the same logistical concerns or growing pains you are going through. Talk with others to learn from their experience and work together for everyone’s benefit.

Watch this video for insight on why joining a local Chamber of Commerce can benefit your business.

With these helpful and cost-saving ideas, you can continue to work toward your business goals. Whether you stay a small business or grow and expand into something bigger, you will always look back to the values and lessons you learned at the inception of your company’s journey. By lowering your business’ operating costs, you will have more money to innovate and ideate toward new ideas and a better future for the company you created.