With the new year in full swing, it’s time to make sure your business starts off on the right foot. 2020 was a tumultuous year for businesses big and small due to the coronavirus pandemic. Businesses closed, unemployment rates skyrocketed, and the way companies conduct business changed drastically with the shift to telework.
To ensure 2021 is kind to your business, it’s important to know how to keep its finances in check to ensure any economic hardships don’t cause financial stress. Knowing how to save your business money can help your company in various ways, such as boosting an emergency savings account, investing, and rolling out new products.
If you’re looking to take your company to new heights this year, take a look at our guide on how to save your business money in 2021.
Outsource where you can
Having experts with in-depth knowledge is crucial for attracting and retaining customers. However, in-house experts aren’t always necessary, especially if you don’t utilize their skills on a daily basis. Having full-time experts on your team can also be extremely costly. With that said, outsource where you can. Outsourcing can be a great way to find premium talent, as you can find remote workers anywhere in the world or local experts if they need to be in-office.
For example, you might not need a full-time content marketer to run your blog if you’re a relatively small business and only post once or twice a week. By outsourcing, you can find a remote content writer anywhere in the world, often at a much cheaper cost. This is because you won’t need to pay benefits, such as healthcare and 401(k) contributions, and can find a freelancer within your budget.
Other areas that may be worth outsourcing, depending on your company’s demands and size, include HR, payroll, accounting, and IT.
Research bank accounts
The bank you partner with to manage your business finances can have a significant impact on how your business saves money. For example, having a business account that charges expensive monthly fees can add up over time, digging into your savings. Make sure to research checking accounts with minimal or no fees, is FDIC-insured, overdraft protection, and accessible banks and ATMs in your area.
In addition to finding the right checking account, make sure to compare credit card accounts to find the right one for your company. It’s important to find a credit card that comes with a low interest rate, as accounts with high interest rates can result in enormous sums of accrued interest on unpaid balances. You should also look for credit cards without an annual fee, or negotiate with your credit card issuer to reduce or remove the annual fee.
Rework your advertising
Advertising is one of the easiest ways to bring in and retain customers. However, depending on your current advertising and marketing efforts, you may be spending more than you’re bringing in. Fortunately, there are plenty of low-cost marketing efforts you can take advantage of this year to save and make money.
Rather than focusing your digital marketing efforts on paid Facebook and Google ads, consider investing your time in search engine optimization (SEO). If you know SEO best practices, this is a free way to bring organic traffic to your online site. Some SEO best practices include:
- Maintaining a blog and posting regularly
- Using keywords in blog, product page, and category page copy
- Improving user experience
- Having a mobile-friendly version of your site
- Using unique images and graphics with appropriate alt-text and file names
- Incorporating internal links to improve crawlability
In addition to SEO, social media is another free and easy way to save money and attract new customers. Social media platforms like Facebook, Instagram, Twitter, Pinterest, and YouTube allow you to connect with your customers, promote your products, and grow your brand. The best part of social media is that creating an account is completely free, and once your account is up and running, you’ll be able to share your products, respond to comments to build trust, and try new marketing tactics like giveaways to bring in new leads.
Consider operating only through mobile
Having a brick-and-mortar store can be extremely rewarding. However, the costs of running a brick-and-mortar store can be extremely expensive, especially if you’re in a location without a lot of foot traffic. To avoid maintenance costs, property taxes, costly leases, utilities, and other expenses, consider operating your business only through mobile.
By running an ecommerce business, you won’t need to hire cashiers and a sales team, and you’ll be able to spend more time on your products. To operate via mobile, you can consider working out of your house and operating through a home office, which can qualify you for various tax deductions. Or, you can rent a smaller space and employ however many workers you need to operate, fulfill orders and manage your online website.
If you do want a brick-and-mortar store, consider starting small first by opening a kiosk in a mall or investing in a cart and selling at various areas in your location where permitted.
Additional money-saving tips
Along with these big money-saving tips, some simpler ways you can save your business money in 2021 include:
- Working with a trade association to order supplies in bulk
- Clean up your mailing list with USPS for free to save on shipping and postage costs
- Hire interns
- Raise your deductible to lower your insurance premiums
- Use free software
- Work with a local TV station to spread your brand
There are plenty of ways you can save your business money this year. To get started, make sure to look at your finances and budget to determine where most of your business’s money is going. Then, look at areas where you may be overspending and make a plan to cut back. It’s also important to think of changes you can make to your business plan to make more money, such as through free or affordable digital marketing campaigns and using freelancers.
Samantha Rupp holds a Bachelor of Science in Business Administration. She is the managing editor for 365 Business Tips as well as runs a personal blog, Mixed Bits Media. She lives in San Diego, California and enjoys spending time on the beach, reading up on current industry trends, and traveling.
Image Credit: https://seeya.com/