While there are so many factors that can make or break an SMB, money usually ends up being the main culprit behind a company’s downfall or success. Now, there are some aspects of business, where you should definitely not try to skim, like your marketing or the quality of your products. Then again, there are more than a couple of areas where you could tighten your belt a bit in order to free up some much-needed resources. Here are five ideas that numerous SMBs in the past have found useful.
Turn towards telecommuters
By hiring remote workers instead of expanding your in-house team, you can save money in more than a couple of ways. First of all, you won’t have as many people in the office, which will allow you to hire a smaller working space. Apart from allowing you to pay a smaller lease price, this price also reduces the cost of utilities for the office. Finally, in the situation where you’re not obligated to cover their travel expenses, you get to cross over another major issue off the list.
While sometimes creating an in-house department may be the more frugal option, it is highly unlikely that this will pay off in the following years. Think about it, the turnaround caused by preparing the office space, training and hiring employees can already put your company at a substantial loss. Furthermore, it might be quite a while before your team reaches the proficiency level that your business needs. Needless to say, this also loses you money, although indirectly.
More efficient marketing
In the introduction, we mentioned that you shouldn’t be trying to save money on your marketing. However, you shouldn’t be throwing it away either. For instance, sometimes the least expensive marketing techniques are the ones that give you the greatest ROI. By finding out which of these methods suit you the most, you can easily get a much better response from your target demographic while spending less. One of the few win-win scenarios there are in the business world.
Look for free software
One of the things that a lot of people aren’t aware of is just how many free software alternatives there are out there. For instance, instead of using Microsoft Windows, you can use a free operating system like Linux, BDS or Haiku. This may not seem like much, but when you multiply the price of a single Windows OS with the number of devices that you need to install it on, you will get the full picture. Same goes for most tools, plugins and even CMS platforms. There’s always an alternative, you just need to look a little harder to find the one that suits your business the most.
Finally, one of the ways to truly make a difference in your utility bill is to make your headquarters truly self-sustainable. In order to do this, you need to achieve two major goals. First, your business needs to be as power-efficient as possible. This means switching to low-power appliances, LED instead of incandescent bulbs, as well as investing in proper insulation for your premises. Second, you need to create your own source of power. Luckily, in this day and age, options for this are ample and you can easily go for the reliable Solar System 5kW if you wish to be energy-efficient.
On its own, every single one of these methods may be enough to make a difference. However, if you try to combine them to create the ultimate frugal business model, this difference might become ground-breaking. Of course, there are numerous other options that deserve consideration, like migrating to the cloud, renegotiating the deal with your suppliers or even inviting them as partners. The possibilities are endless.