Six Simple Cost Saving Measures for Small Business Owners

All successful businesses do their best to save money, improve efficiency, and increase profits whenever and wherever possible. While there are numerous ways to save money, the following six cost-saving measures are easy to implement and the benefits could be substantial.

1.Bargain For Everything. Bargaining with vendors is one simple way to save money. While some may be uncomfortable bargaining, remember that your competition likely is not. Any cost saved is a benefit to you. Start small and negotiate the little things all around you. The worst you can be told is no and the best that could happen is not only a great deal, but a new and more profitable way of conducting business.

2. Annually Review Your Credit. Does your company credit card (or personal credit card used for company expenses) have a high interest rate? Can you get a reduction via a balance transfer? Get creative and not only consider transferring balances, shop around for credit that provides great rewards like air travel miles.

3. Consider That Lease. Leasing may be more cost-effective than buying – especially if you require high-tech machinery. Often leases will come with maintenance agreements and on-call specialists who can reduce the time your equipment is out of order. However, like all contracts, be sure to carefully review your lease terms! Calendar your auto-renewal period, keep your initial terms short with new companies and negotiate price decreases on renewal. Read the fine print or out-source the reading to someone who will.

4. Live In The Cloud. Can you save time and money by allowing virtual connections? Running your business “in the cloud” can save you money on local servers and IT costs, and help make the transition to a paperless office easier. Operating in the cloud can also make your business more mobile and reduce the expense of rent and utilities for your office space.

5. Consult With Your Employees. If you want to know where all the best ideas are, ask your employees who are your troops on the ground. Create a culture that welcomes feedback. Your employees, better than anyone, can tell you how to improve your processes and by getting their “buy-in,” you’ll also likely increase their job loyalty.

6. Manage Your Risk. Without fail and most importantly, manage your risk. On countless occasions, new clients have come to me seeking legal litigation counsel because they failed to get transaction advice on the front end of the deal. If I could shout it from the mountain tops I would, “by spending a few thousand dollars for legal advice on the front end of any deal, you might just save tens of thousands, if not hundreds of thousands of dollars on the back end for litigation. Avoid the lawsuit!" A business law attorney can help build a risk mitigation plan that involves contracts, business structure processes, and insurance review and compliance.

Using simple cost-saving measures can make a difference! And, although hiring a business attorney to evaluate your operations may cost some money up-front, it can save you more money in the long run. For more tips and information, contact one of our attorneys at our Sioux Falls, Sioux City, or Omaha office today!