Whether it’s getting their company off the ground or keeping it going strong, small business owners know that profit margins can be slim. Every dollar saved can be put back into the business to make it grow bigger and stronger. With that in mind, here are a few places that companies may find themselves overspending:
Buying instead of leasing business equipment
For businesses that are just starting out or rapidly growing, it’s hard to predict whether the equipment purchased today will still be useful in six months or next year. Instead of sinking money into computers that may become practically obsolete within a couple of years, small business owners should consider leasing the items they need, making upgrading to the latest models a much less expensive process. Many times leasing makes more sense than purchasing equipment for your business.
Depending on traditional lenders
When it comes to small business loans, traditional brick-and-mortar lending institutions are falling by the wayside in favor of more non-traditional lenders. If small business owners find that they are paying too much for their credit, it’s worth their time to look around at other options.
Renting a huge space
With the advent of Internet-based meeting systems, the ease of online chatting and simple document sharing, it’s less and less necessary for employees to come into the office on a daily basis. Choosing a smaller office space can save small businesses money well beyond monthly rent. Utility bills can be greatly reduced by moving into a more conservatively sized location, for example, and workers may be willing to take a pay cut if they can work from home, as they will have to spend less on gas, parking, or train fare.
In the past, the best ways to reach out to new customers included expensive advertisements on television, in print, or on billboards. However, as the Internet continues to infiltrate virtually every part of business, it’s easy to cut out such costly measures in favor of cheaper – though often equally or more affective – online ads. Social media is a powerful tool that can be leveraged into huge results. Starting up a blog or Facebook page to offer helpful tips and news to potential clients is a great way to get the name of a company out there and attract new customers to the business’s website.
Everyday expenses can add up
Small business owners should have a firm grasp on where every penny that their company is spending goes. This includes everything from paying the electric bill to purchasing paper clips. Writing down every expense for two or three months gives owners a chance to see where all of their money is going – they may be surprised where corners can be cut. Just as people may need to eliminate their daily latte from the corner coffee shop to help cut down on unnecessary expenses, small changes in spending habits can make a huge difference for small businesses, especially those that are working on relatively thin profit margins.
Small business owners who are looking to save costs by leasing equipment and discussing other financial options can contact National Funding for assistance.