Just because you’re running a business doesn’t mean you have money to burn. In fact, entrepreneurs are some of the most frugal people on the planet, having learnt the hard way where they can afford to cut costs, and where they should invest what profits they have left over. Everyone could always use a few more tips though, here is a handful of useful tricks to help you save the pennies when running your own small business.
Outsource limited projects
You’re likely to come across several areas of work where your own skills are lacking, but it’s a finite project and doesn’t make sense to hire a full-time employee. The most cost-effective solution here is to hire in freelancers and contractors for that specific piece of work; a set fee with an established completion date and that’s all you need worry about. Just be sure to have non-disclosure agreements and terms of agreement drafted by a legal professional if the contractor doesn’t already have one.
This has become a well-established new way of working in recent years, and all the blue-chip organisations are taking full advantage of it. On the one hand, giving your employees the opportunity to work from home by providing them with laptops and mobile phones can be a real morale boost, demonstrating your understanding of the need to provide time for family and life commitments. On the other, it can help cut your operation costs considerably. Try to work from home where you can, and make the most of coffee shops in between clients if out on the road.
Recruitment agencies not only charge a huge fee for their initial services, such as posting job adverts and liaising with potential candidates, but they also take a cut when you come to hire the right person for the job. In fact, their commission can sometimes be the sticking point in negotiations, but by that point they’re holding all the cards. These are all tasks that you can easily do yourself as a small business. You can set up accounts on job sites yourself, and don’t forget about social media either – a tweet with the right hashtags is likely to travel a long way.
Use a courier
Using a courier instead of standard mail services is now a must amongst most companies. Royal Mail simply doesn’t have the level of reliability that you need, but most importantly, you couldn’t trust confidential documents in their hands. Instead, look around for trusted courier companies who ship everything from your contracts to parcel delivery and see who has the best rates on the market. Most of these also deliver to Europe and beyond, allowing for when your company expands its horizons.