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As a start-up cash-strapped business owner, you need to have your expenses in check. This approach will help you combat global economic fluctuations. Let’s look into these cost-cutting tips to keep your cash-strapped business afloat.
Cut down on printing
A standard desk printer ink costs upwards of $20 per cartridge. In the digital age, we have other alternatives to printing on paper. Many businesses share documents through Google Drive and Dropbox. Not to mention, paperless billing is now the norm in today’s society. When you are required print hard copies, make sure your employees share printers. Purchase in bulk and send your old cartridges in for discounted refills.
Save on utility costs
Reduce the cost to heat, cool, and light your workspace. Save on summer air conditioning costs by pre-cooling your space. Set the thermostat to cooler-than-normal temperatures early in the day and to warmer-than-normal in the afternoon and the space stays cooler all day long, reducing energy usage by 25% to 30% during peak electrical demand.
Take inventory of the staff
The payroll is often one of the top costs a cash-strapped business owner has, so make sure the money is well spent. This may involve a thorough internal review to make sure the right people are onboard and doing their jobs effectively. Hire employees based on their long-term value and potential. Hiring a worker who costs 20% more than the average worker but who works 40% more effectively makes sense, particularly during periods of crisis.
Hiring inexperienced employees will reap long-term rewards
Hiring experienced employees comes at a cost. So does this mean that cash-strapped business owners with a shoestring budget have to hire inexperienced employees with high turnover rates? Not necessarily. Hiring smart, diligent inexperienced employees will help you in the long run. It may take some time to train them, but if they are capable, they will learn quickly.
Offer more internships
Investing in quality interns is a great way to cut costs and get more work done. The majority of the interns aren’t expecting to get paid and are on the constant lookout for work experience. To boost up their resume. Not only that, it’s a great way to scout potential future employees for your business.
Hiring multiple employees for all different types of job functions can be costly. You should look to outsourcing your work to oversee employees and freelancers. For instance, need a special tool built for your website? Instead of hiring a full-time developer to work on your project, hire a freelancer instead to develop the tool for you. You may be surprised how much you can save from hiring contracted workers rather than placing them on your regular payroll.
Look into Co-working spaces
Co-work spaces are a great way for small business owners to provide a stable workspace for their employees while also saving tons of money on space. Plus, it’s a great way to network with other startup businesses and entrepreneurs.
Here’s hoping these cost-cutting tips help your cash-strapped business not just survive, but thrive. Get in touch with ATS Accounting to get the business accounting advice your business needs.