Owning, managing, and running a small business tends to make you hyper-aware of your finances. However, securing capital, dropping a down payment on a store location, purchasing inventory, and launching your initial marketing campaign can be considerable expenditures.
The next step you will do is performing a financial balancing act, attempting to raise your profits into the black while continuing to invest in your business. It is crucial to weigh the pros and cons of tons of financial decisions over your business life — and that is when things are going well in the broader economy.
The day-to-day reality can differ when economic factors like inflation or a global recession start affecting your business. As a result, you may have to start thinking a little more creatively about how to pinch pennies and tighten up operations. While some of these money-saving steps are obvious — optimizing your budget, identifying core needs, maybe cutting back on seasonal decorations this year — others require a little more out-of-the-box thinking.
Here are some creative ways to help you save money for your business right now.
1. Start an emergency fund
Yes, one of the oldest and best tips in personal finance can also be applied to your business. It could be a lifesaver to put a few dollars into a dedicated emergency fund daily or at the end of every week. Any kind of emergency expenditure might hit your business — a flood, a fire, a fee — and if you are not financially ready, it can be devastating.
Most experts recommend saving up from three to six months' worth of expenses, but there is not necessarily a perfect number. However, as long as you regularly put money into an emergency fund, it will help you build a safety net over time and the longer you go without needing it, the bigger it gets
2. Go Green
Going Green can save the planet while also saving you money. Whether you are running your business from home, out of a storefront, or even in an office or coworking space, if you do your business more energy-efficient, you will save money on utility costs over the long term.
There are other ways to promote going green and saving money simultaneously, depending on what kind of business you have. For example, restaurants can look into sourcing their ingredients sustainably and/or partnering with local farms, which can help you reduce shipping costs while expanding your local network of partnerships. If you need to do repairs or construction at your business, you can purchase recycled construction materials that are cheaper and more sustainable. If your company makes deliveries, consider hiring a delivery person who uses a bicycle instead of a car. Other minor changes like recycling, installing light-timers, buying used equipment, and letting employees telecommute can help your business save money and reduce its carbon footprint over time.
In fact, by digitizing more aspects of your business — like accepting cashless payments — you go green while also potentially increasing your sales. Moreover, cashless is growing. Consumers focus on finding what they want when they want it and how they want to pay for it. So it can be more critical to your business than any other factor.
3. Automate with Technology
Technology has come a long way, and your business might be able to automate more tasks than you think. It is so much more than just accepting payments. It can help you run all aspects of your business.
With tons of built-in features and hundreds of additional apps to download, an eatOS POS system can help you automate everything from payroll to inventory tracking to customer feedback. Building automated tech solutions into your business does not just help you modernize. It can also help you stay focused on the areas of your business that need your attention the most.
4. Partner and Outsource
Most businesses may already be familiar with partnering and outsourcing by launch. For example, if your business needed a logo design, you might have outsourced that task to a graphic designer. However, new companies must focus on their core mission and goals as much as possible while forming long-term business partnerships and outsourcing ancillary tasks and support functions. That way, you can pay for services only when needed instead of incurring the cost of full-time employees.
Partnering with local vendors, artists, and services can help your business grow. It is possible to collaborate with local colleges and universities, especially if they offer business degrees. Those colleges often require students to do capstone projects in conjunction with local businesses, meaning they can help you with website evaluations, data audits, or short-term marketing ideas.
5. Build a community
This one might sound a little more obscure, but it is essential and can be a genuine money-saver over time. Building your business as a community and making your employees feel like they are part of the system can help save you money and headaches in multiple ways. For one, you will save on hiring costs by reducing employee turnover. In addition, if employees feel valued, respected, and like they are part of a community, they will be more productive and dedicated to the business's long-term growth.
Taking a little extra time to make your business feel like a community can pay off in dividends and do not forget about your broader community, either! Getting involved in the local community in which your business operates is the best way to form relationships, spur word-of-mouth marketing, and find new customers. Sponsoring a community event is another excellent use of time and resources. It will help get the word out about your business around town and maybe in the local media.
Contact eatOS today to learn more about automating your business.
