Don’t spend more than you have to.
- Saving money for your small business is very important.
- You can cut some costs.
- Consider cutting back on food, marketing and credit card fees.
They say it takes money to make money, and that makes a lot of sense. But the reality is that the amount of money you’re spending may be too much in the process of running your small business. Here are some of the costs you may be overspending.
1. On-site catering
It’s good to offer your employees perks like free coffee, snacks, or even meals. Doing this is a way to show your gratitude while keeping your team happy and productive. After all, if your workers have to run to the corner store or the corner Starbucks three times a day to get gas, it’s likely to hurt their productivity.
Meanwhile, on-site food and drink isn’t one of the standard perks offered by all companies. While you may not be able to escape the consequences of cutting your health insurance, you’re really under no obligation to feed your employees all day long. So if this expense is wreaking havoc on your budget, it might be time to cut back.
That said, you might want to keep drinking your coffee—and just skip your meals and snacks. Workers who get enough caffeine are sometimes more productive.
You need to market your small business – no doubt about it. But are you paying too much for expanding your reach? You may need someone to spend a few hours a week updating your social media. But do you need a social media executive who works 40 hours a week? Maybe not.
Review your marketing budget and make sure it’s reasonable with potential benefits in mind. For example, if you’re paying a lot for print ads that aren’t bringing you a lot of business, it might be time to stop.
3. Credit card processing fee
Do you have a small business credit card with a fee? There may be more cost-effective alternatives. Admittedly, smaller business cards that cost more often offer better returns. But if you’re not benefiting from those rewards as expected, it might be time to downgrade to a small business credit card that doesn’t cost you much.
4. Business lunch
Business lunches are a great way to network and expand your business. But if you’re paying three of these every week, it might be time to cut back. You can also get to know people in your industry in other ways, such as attending trade shows or conferences. These may cost more than a meal, but they allow you to make multiple connections in one go.
Running a business requires money, and some of the expenses you pay can definitely count as investments. For example, it may be worth hiring an experienced and savvy accountant, even if you can find someone who charges less. However, if the aforementioned expenses make up a significant portion of your budget, it can really be worth looking into the aforementioned expenses to see if you can take steps to reduce them and save your business cash.
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