by Sam Melton
The initial costs of starting a business can be quite incredible. You must have a strategy to save money, or you’ll start your business in debt. Here are some tips to help you save money and improve your business strategy.
1. Invest in technology
Business owners want the best of productivity, profitability, and efficiency. Technology can help, if the proper investments are made. Make online payments instead of mailing payments to save on postage. Choose cloud computing services instead of investing in servers to save money. There are often huge returns on investments when technology is integrated into the daily process.
2. Try VoIP and mobile phones instead of land lines
Many companies switch from traditional phone lines to cell phones and VoIP. This is a great way to reduce business costs. It can save companies hundreds of dollars, and improve mobility and productivity of employees. Consider VoIP to lower costs, and to serve as a disaster-recovery solution. The initial equipment costs may be greater for VoIP, but the monthly costs are so low that it makes the initial investment worthwhile.
3. Reduce credit-card debt
Businesses can become more profitable if they reduce credit-card debt. You might have to refrain from credit-card use for every expense. Although credit cards offer rewards, they might not be an effective way to manage business costs long term. High interest rates can drive up costs. Without excessive credit-card use, you’ll better manage your resources and reduce business costs, long-term.
4. Market your business online
Choose a low-cost Internet and marketing plan. Many businesses use Verizon Internet for fast connections at economical prices. Switching to fiber internet like Google Fiber or Verizon Internet can help save significant money. Businesses need blogs and social media marketing to gain exposure. With online marketing, businesses can gain quick response without a significant investment.
5. Lease equipment instead of buying it
If you lease instead of buy, you can preserve more cash flow that can be used to upgrade your products and services. Many companies lease equipment, computers, furniture, and fixtures. It might cost your company thousands of dollars to purchase these items, and even more as the value of the equipment depreciates and requires upgrades. Leased equipment will reduce expenses associated with business startups.
Leased equipment is also tax deductible and can help alleviate your company’s tax burden.
6. Lower your business costs
If you want to lower the costs of your business, you can start by following these few simple tips. When you apply the tips, you will start to realize the cost savings, and you can improve your financial outlook.
Sam Melton is a former marketing professional and freelance business technology writer.
Faruk Ateş | Courtesy of Sam Melton