As 2021 comes to an end, many small businesses are taking the time to review their 2021 books. They are planing their 2022 budget. Owners and managers may be looking for places to save money to make your small business more profitable.
Many are experiencing the stress of the cost of goods and services that has drastically increased. These business owners are looking to find other areas for cost savings to sustain similar profits as an alternative to increasing their current prices.
Discovering even a few areas of savings can add up to significant savings annually and over the life of your business, leading to more substantial profits.
Here are nine ways your small business can save money in 2022:
1. Partner with other companies to co-sponsor or co-host marketing efforts to share expenses.
Are you planning on hosting an event in 2022? Could you get a sponsor or an in-kind sponsor to reduce expenses? Do you send mailers out to attract new customers? Could you partner with a like-minded business and split the costs? Could you partner with a company that does not compete with your business to share the costs?
2. Outsourcing can produce significant savings by eliminating the need to hire for specific roles.
Outsourcing can be highly beneficial for small businesses that have limited resources. It also decreases the burden of tasking responsibilities to employees that they may not embrace due to lack of skill or experience. Outsourcing various tasks such as payroll to a trusted small business payroll provider can allow owners and managers to focus efforts on running the business.
3. Be open to getting advice from a team of experts to support the success of your business!
Enlist support from a strong team that includes trusted advisors. Some examples include a CPA, financial planner, and business attorney. Trusted advisors can help ensure that you are provided with up-to-date information when making decisions. As your business grows and your situation changes, they can help keep you up to date with regulatory changes that can impact your bottom line. They can offer advice to ensure your business is structured correctly. Advisors can ensure you are eligible for any applicable tax credits can save the company tremendous money. Third-party advisors can also ensure that the business is protected from costly liabilities. Financial advisors can help with retirement for owners and employees and be a sounding board when making decisions.
4. When making purchases and entering into agreements for your business, understand and evaluate all financial options available to you.
Perhaps you’ve always purchased new in the past. There are other options. These financial decisions can include leasing, purchasing fresh, and buying used. Whether it is real estate, equipment, or vehicles, understanding the options available to you can save money. Evaluating the complete picture, which includes possible tax credits and expenses such as maintenance, will allow business owners to make the best choices that will be the most cost-effective in the long run.
5. The best advertisement a business can have is word of mouth. Leverage reviews!
A satisfied customer is your business’ best spokesperson. Learn how to leverage testimonials to reduce advertising expenses. Minimize digital advertising costs by capturing online reviews. Displaying testimonials in places visible to your potential new clients can drive new revenues. Promoting positive reviews could reduce advertising expenses.
6. Shop vendors regularly to ensure your rates are competitive.
The end of the year is an excellent time to look at your spending history and paying fees. Credit card processors, payroll providers, industry suppliers, and other vendors’ prices can vary. Now is a great time to get a second look.
7. Decrease administrative expenses such as mailing costs. Review previous mailers to evaluate cost savings options.
Could you send some items electronically? Could several mailers be bundled together to save postage costs? Can you invoice and pay bills electronically to save money? Perhaps consulting with a firm that specializes in printing and mailing could make recommendations to save money.
8. The pandemic taught us that many businesses could perform without space or with less space. Could you downsize your space?
Downsizing or co-sharing space can bring considerable savings. Several places in the Central PA area have co-sharing options that would allow micro and small businesses the opportunity to utilize space as needed at a reduced cost.
9. Make use of the benefits of your professional memberships and affiliations.
Industry associations and your local chamber of commerce often have programs that offer discounts on insurance premiums and energy savings that may provide savings. Typically this is achieved by pulling members together and offering rates usually unavailable to a smaller business.
It is a busy time of year for many small businesses.
There may be a lot on your plate to close the year and evaluate some of our suggested options.
Talk to your vendors and your employees to see what other ideas they may have. Small business owners may want to gather ideas for saving money and prioritize this list to save the organization money.
Don’t stress if you cannot make all the changes you’d like in the next few weeks.
PaySmart is honored to provide you with a no-obligation quote to support your business goals if you are not already a client. If you are already working with us, we are always happy to discuss your payroll and provide solutions to ensure that we offer you the best service possible!
PaySmart is a payroll provider located in Mechanicsburg, Pennsylvania, supporting small businesses in the Central PA region. We are dedicated to helping small businesses take care of their payroll needs. To learn more information about how PaySmart may provide payroll solutions, please get in touch with us at 717-766-1777. Our New Client Concierge is waiting for you!