Small Business Advice: How to Invest in the Business While Reducing Costs

May 27, 2019

On average, business insurance increases by 10 to 20 percent per year. Fuel surcharges are added to the cost of airline tickets even after the cost of oil drops by 50 percent. A wholesale supplier increases the cost of must-have materials by 10 percent on an annual basis.

Small business owners constantly face the squeeze of growing expenses. Unfortunately, these expenses hit them from all angles. This makes controlling costs more important than ever before.

While a top priority for any business owner is to save money, it doesn’t mean all improvements and investments must cease. Creatively investing in the business helps ensure it continues to grow while reducing the financial strain.

Get to know some ways to invest in the growth and success of a business without overspending and even reduce costs in some areas.

Buy Used Furniture and Business Essentials

To succeed, businesses have to have the proper furnishings, such as desks, lamps, chairs and more. While going to the local office store and buying these items new is an option, there’s a better, more capital-friendly option to consider. Buying things like used desks, chairs, and used store shelving can reduce costs significantly.

Just because used items are being purchased, it doesn’t mean they are low quality or damaged. Many large businesses and businesses that have closed opt to auction off furnishings and other business essentials. This presents the perfect opportunity to get the items needed for a much lower price.

Reduce Office Spaces Expenses

While the commercial real estate situation varies from one area to another, it is often possible to take advantage of reduced prices for office space in less desirable areas of town. If not, try negotiating with the landlord of the current commercial building.

Yet another option is to consider closing down the physical office completely if this is possible. Operating a business from home, going mobile, or even getting a coworking space are all great ways to reduce office-related costs.

While this move helps provide savings on office space for business operations, it can also help save money on utilities, business taxes, and insurance. Just remember, there are often zoning laws present for home-based businesses, so find out what these are before making a move.

Reduce Advertising Costs by Investing in Social Media

On average, a small business spends about five percent of all revenue on advertising. This figure’s much higher for service-based businesses and startup companies, than established companies.

Today, potential customers, for virtually any product or service, are available online. Small business owners can take advantage of this by investing in online advertising efforts. The best part is, many of these options are free or extremely affordable.

A great first step is to create a website or Facebook page. Take time to Tweet out information about the business and even create an email newsletter. All these advertising methods are much more affordable than traditional newspaper, television, radio, and billboard advertising efforts.

Help a Business Grow with Smart Business Investments

As anyone can see from the information above, investing in a small business isn’t something that has to cost a lot of money. In fact, when business owners plan carefully and think about what they really need, they can come up with clever ways to help their business grow, make smart investments, and reduce costs.