How to Save Money for Your Business

How to Save Money for Your Business

Any business owner knows that saving money is essential to the success of their enterprise. However, it can be challenging to know where to start when it comes to cutting costs. Businesses have a lot of overhead expenses, including rent, inventory, staff, and marketing. Due to a shortage of finance, many companies have to close down. With an economy struggling, every small business owner is looking for ways to increase profits, save money and improve efficiency. Here are eight tips on how you can save money for your business.

Switch banks

Banks are always trying to get new customers and will offer sign-up bonuses and other perks to lure you in. If you’ve been with the same bank for a while, it’s worth considering switching to take advantage of these deals.According to Jordan Sudberg, it’s no surprise that banks are looking to squeeze more revenue out of fees to make up for all the new regulatory changes since the financial crisis. But that doesn’t mean you have to pay them.

Get a business credit card

A business credit card can be a great way to earn rewards on your business expenses. If you pay off your balance in full each month, you can avoid interest charges altogether. Just be sure to use a card that offers rewards that are valuable to your business, such as cash back or points that can be redeemed for travel. 

Pay yourself first

When running a business, Jordan Sudberg believes that getting caught up in the day-to-day and forgetting to take money out for yourself is easy. But if you want to save for retirement or a rainy day, you must be disciplined about setting aside money each month. One way to do this is to “pay yourself first” by automatically transferring a fixed percentage of your income into savings before you pay any other bills.

Consider bundled services

Many businesses can save money by bundling their services, such as internet, phone, and television. If you’re unsure what’s available in your area, call your service providers and ask about package deals. You may be surprised at how much you can save.

Renegotiate your lease

If your business rents office or retail space, now is an excellent time to renegotiate your lease. With the commercial real estate market still struggling in many parts of the country, landlords are more willing to negotiate on rent and length of the lease. If you’re looking to move, you may be able to get a free month or two of rent as an incentive.

Shop around for insurance

Insurance is necessary for any business, but that doesn’t mean you have to overpay. Shop around and compare rates from different insurers at least once a year. You may be able to get a lower rate by switching to another company.

Hire an intern

Consider hiring an intern if you need help with tasks like social media or marketing. Interns are often willing to work for less pay to gain experience in their chosen field. Just be sure to check with your local laws on minimum wage and other labor regulations before hiring an intern.

Use energy-efficient products

One of the easiest ways to save money is to use energy-efficient products. This can range from something as simple as using LED light bulbs to more expensive items like solar panels. Energy-efficient products will save you money on your utility bills and help reduce your carbon footprint.

Savings is vital for the success and continuity of your business. The tips will help you reduce costs without compromising the quality or quantity of your product. They also do not require a lot of time or effort to implement. All it takes is a little creativity and discipline, and you will be on your way to saving money for your business.

Money-Saving Tips for Your Business

In order to save money, a business has only two options: to trim expenses or increase profits.

1. Common Business Expenses

Business expenses are necessary costs that need to incur for the business to operate. Not all expenses a company incurs are tax-deductible. Expenses that you can deduct are those that the IRS considers to be both “ordinary and necessary”.

Some expenses also need to be capitalized which is usually an expensive asset that a business invests in to generate revenue, but is also one that will depreciate over a number of years like a piece of equipment. Correctly identifying and classifying expenses allows a business to assess their profits accurately.

Here are some common business expenses that may be partially or fully tax-deductible.

If you operate your small business from home, you may be eligible to deduct partial expenses from your rent, mortgage interest, property taxes, business phone line (if separate from home line), security system and maintenance costs.

We can also classify expenses as:

Although you cannot deduct personal expenses, you can deduct the business part if the expense is used for both personal and business reasons.

2. Ways To Increase Your Business Profits

For a business to continue operating in the future, it needs to be profitable. Here are a few ways you can improve your profitability.

Increase the price of your offerings

If you have a loyal customer base whose trust you earned with the quality of your offerings, they shouldn’t mind if you increase your prices every once in a while.

Achieve greater efficiency

Cutting steps in operations or reengineering them altogether can make them more efficient. The goal is to eliminate tasks that don’t add value to the final product or your bottom line.

Look for ways to improve your offering

Consumers like companies who listen and go the extra mile. A constantly evolving offering will help you shorten your sales cycle, strengthen brand loyalty, and perhaps, even allow you to increase pricing. Don’t allow your product to get outdated. Make the buying process easier and simple.

Feed your winners; starve your losers.

The Growth-Share matrix states that your efforts need to be directed at your profitable customers so you can ‘milk’ the cash cows to feed your stars and R&D efforts that should become cash cows in the future. Cutting your efforts on losers (dogs) will save you valuable resources that you can use to reward your most profitable customers.

3. Simply Money-Saving Tips for Your Business

Saving money is always easier said than done but by no means is it impossible.

Think of ways to reduce your basic costs

When setting up your utilities look for a provider with a competitive rate like Gas South.

Go green

Going green saves green. The more energy-efficient your space is, the lower utility costs you’re going to have. Moreover, green investments could make you eligible for tax credits and deductions, further benefiting your bottom line.

Embrace technology

Software makes bookkeeping, accounting and presentations a breeze.

Cut down on everything you can

The rule of thumb is: when in doubt, go without. You can apply it to any purchase as well as unnecessary meetings. Just do a rough calculation based on the number of people and their average hourly salary, and you’ll be surprised how much money you throw away.


With so many price comparison websites, it’s so easy to ensure you are getting the best value for your money. Negotiate with suppliers and always ask for discounts.

Takeaway – Saving money as a small business can be tricky, especially if you are just starting. However, it’s more about the mindset than actual figures. Remember, every action counts and helps your business on its way to better financial health.