Saul Mishkin

Money Saving Tactics For Running A Business in 2021

Every year business owners are searching for ways to make sure they have more money coming in than going out so they can keep their doors open. According to the U.S. Census Bureau, 1 in 12 businesses close every year. After a difficult year in 2020 for businesses, here are several money saving tactics for running a business in 2021.

Discounts and Negotiations. When it comes time to evaluate your expenses don’t assume the prices you are currently paying are set in stone. Ask your suppliers about discounts and/or reach out to negotiate prices. If you have the available cash you can ask about a discount for paying for product up-front or a discount for buying in bulk. 

Creative Advertising. There are a number of ways you can creatively advertise that will cost less money than typical advertising. You can create a social media campaign that helps your customers spread the word about your business without having to spend money. This may include hosting an online giveaway, creating a post where people can tag their friends or family to appreciate or celebrate them, or creating content that people want to share because it’s particularly funny or shareworthy. 

Another way to advertise creatively is to include information on upcoming sales, products, or events when you send out invoices. Since you are already spending the money to send out the invoice, you might as well squeeze in some advertising. 

Consider reaching out to your neighboring businesses and collaborate on advertising so that the cost can be reduced for each business. You may consider hosting an event that features multiple local businesses or creating a promotion that benefits several businesses.

Overhead Costs. Consider cutting overhead costs to save money. Consider what tasks can be completed by a freelancer which often costs less because you are not paying a full-time salary with benefits. Hiring freelancers also means you are only paying for work when you need work done which allows you to staff based on the ebbs and flows of your business. Additionally, you will probably require less office space if you have fewer full-time employees allowing you to save money on overhead office costs. You might also consider having some people work from home to reduce the need for a large office space. 

Attention to Detail. Take time to carefully look through the expenses of your business and make cuts where possible. If you pay for recurring services, ensure these are services you are actually still utilizing. If you’re no longer using these services, it’s time to cut them out of your budget and save money.

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