Even though money is not the only essentials in building business, it is surely one of the most vital for business to keep running, especially during hard times. After the pandemic hit last year, this year many entrepreneurs who hoped for better situation so they can get back on their feet. However, another wave of pandemic hit then their hopes were in vain. One of the most concerning problems is cash and saving money diligently from the beginning can help you a lot to survive.
Saving money tips for entrepreneurs
You may save some petty cash from using two-ply tissue or switching off the bulbs. However, this kind of petty cash won’t make you survive for long. It will run out in no time even before your business pass the storm of the crisis. It will be beneficial if you have more drastic saving method, and here are some of the most useful tips you can implement on your business for great result of saving money:
Reevaluate your expenses as a whole
You may have automated some of your business expenses to make it easier for you to manage all the cost. However, it is important that you review it from time to time to see if there is any restructuring needed. Restructuring your rent, insurance, and other monthly cost can help a lot in finding unnecessary expense you can just stop instead. For example, you have monthly subscription of a service you no longer use such as WiFi for your closed office, etc. If there are things you still kind of need but not as intense as before, then you may renegotiate it with the provider to see if you can get discount or something.
Cut out expensive perks
Perks that are expensive totally put a dent on your monthly expense and you must cut out or at least substitute them with something that you can afford more. One of the perks that are very consuming for your monthly expense is snack for employees. You may spend hundred dollars just for snacks. If you close your office, you cut it out automatically. If you still have your employees around and working, then you have to give them explanation about why you need to cut their snacks out. Or, you can also swap out non-essential perks for high-value perks. Instead of paying for snacks, it might be more meaningful for your employees to get health insurance plan, especially during this pandemic.
Consider using freelancers or outsourcing instead of recruiting new staffs
Recruitment costs a lot because it needs to go through several process before you get the right people to join your team. To save money, it is more preferable if you use freelancers or outsourcing to handle some tasks such as customer service, logo design, graphic design work, etc. With outsourcing, you get professional who are ready to handle various works without the need for training first. Then, freelancers can handle more frequent tasks for a lot less while doing it remotely from their own home.