Have you been tightening your belt lately at your small business?
It seems like everyone is looking for places to save some money right now. And that makes sense, as most small businesses have been closed for the last few months. Even though we’re well into reopening across the province, it’s still going to take some time for everything to get back to normal. For businesses to rebound quickly, they’re going to need every spare penny they can find!
If you’ve been going through your small business’ budget looking for places to trim some fat, here are some ideas on how you might save some money throughout the rest of the year:
Change Up Your Advertising
When it comes to advertising, new small businesses sometimes think they need to break the bank to get people to notice them. That could be a big mistake, especially if they’re already working from a limited budget.
Rather than spending as much money on marketing as possible, it would be a better strategy to make the biggest impact for as little money as possible. ROI is crucial when it comes to marketing, so don’t splurge for that full-page newspaper ad right off the bat!
Do you have a professional-looking website? You should! If you’re just starting out, avoid going with a custom design and stick with a service like SquareSpace or WordPress. These are “do-it-yourself” website building and hosting companies that can deliver incredible-looking and easy-to-manage sites.
Once you have your website up, start building your social media presence online. It’s free to create profiles on Facebook, Twitter, and Instagram for your business. From there, you can start to create social media ads. They cost a fraction of what traditional advertising methods cost, but can deliver big returns!
Optimize Your Time
Some people think “time is money” is just an old cliche. Small business owners know better.
The more time you spend on small but time-consuming tasks, the less you’re going to have to spend on the big important stuff that actually makes you money. If you have a staff, you want to be paying them for hard work, not busy work and wasted time. To do this, you need to optimize how you’re spending your hours at work.
To do this, we recommend using a project management system such as Asana or Teamwork. Disorganization is usually the reason why time gets wasted, so fix this by using a tool that keeps your projects and tasks in one place! You’ll be amazed at how much more productive you and your staff become when everyone is clear on what they need to do.
Use Alternative or Open-Source Software
One of the biggest drags on the income of small businesses is the computer software they use. For example, if you work on PCs, then you likely have Microsoft Office installed. If you go with the standalone version of the software that you can only install on a single computer, you’re going to be paying $250. If you go with the subscription model, you’re going to be paying $100 a year. Either way, that’s a lot of money!
There are much cheaper alternatives out there for such software that offer almost identical functionality. For example, Google Suite is not only free, but it includes a great word processor, calendar, spreadsheets, and just about everything else you could get from Microsoft Office. Or, if you want a more Office-like experience, why not try LibreOffice? It’s a free, open-source productivity suite that is very similar to Office in terms of functionality and interface.
Another expensive piece of software that almost every small business uses is Adobe. Adobe programs like Acrobat and Photoshop can be essentials for any workplace, but they can also be incredibly expensive. Subscribing to a single app can run you up to $30 a month. If you want to use all of them, that’s going to be closer to $80 a month. But there are alternatives!
If you want to spend less money on editing PDFs, you could try Nitro Pro. It offers similar functionality to Adobe Acrobat, but for a one-time purchase of $160. If you want a free graphics editor, your best bet would be GIMP (short for GNU Image Manipulation Program). Its interface might take a little getting used to, but its feature set is fantastic!
Have an Accountant Take Care of Your Books
Early on in their business, some small business owners think a great way to save money is to do their taxes themselves. Unfortunately, they often learn the hard way that this is not only a bad idea, but it could cost them money in the long run.
First, doing your own business’ taxes is super time-consuming. If you’ve never done them before, you’re likely unaware of credits and deductions that could significantly reduce your tax bill. Add to that the several hours that it takes to complete and send your taxes off to the CRA, and it often becomes a time investment you can’t afford.
When you work with a professional accountant/bookkeeper, all of that is taken care of for you. We have worked with dozens upon dozens of small businesses over the years, helping them reduce their tax burden and saving them money and headaches. Not only that, but we also help them find places in their budgets where they could cut back and save even more. We realize we’re slightly biased, but hiring a great accountant is a terrific investment in your business’ future!
If you want to learn more about how we can help you manage your business’ finances, we invite you to contact The Number Works today. With our years of accounting experience, we’ll work to save you money and help your business thrive throughout the rest of 2020!