According to the Bureau of Labor Statistics, roughly half of new businesses fail within the first five years of operation. If you’ve taken the plunge to be an entrepreneur, gotten your family aboard and possibly left a full-time job to do so, you don’t want to fail. To ensure your business is successful for years to come, use these four tips to help reduce your expenses this year.
1. Reduce Marketing Expenses
It is very easy to eat up your budget with marketing expenses. The idea that you have to spend money to make money is true, but spending money inefficiently is going to help you lose money instead of making it. The 80/20 rule applies to your marketing efforts. Take the time to do a complete audit of your marketing expenses from last year. What you are likely to find is that most of your wins come from only 20 percent of your efforts. By eliminating those marketing channels that aren’t working, you’re saving money and can redirect your efforts to those marketing channels that are giving you the best return on your investment.
2. Go Remote
Depending on your business, there may not be a need to have a physical office space. With the many apps and tools that can be used for telecommuting, it’s an antiquated notion that people need to be in the same building to work effectively. By going remote, you save on building costs, utilities and other expenses associated with maintaining a physical office.
3. Eliminate Unnecessary Subscriptions
As a small business owner, you likely have many subscription-based services you’ve signed up for over the years. From trade magazines to apps and marketing tools, the costs of these subscriptions can add up quickly. Spend some time taking a hard look at what subscriptions and services you’re using and those you aren’t. You may find you can save hundreds of dollars a year or more simply by eliminating the subscriptions and services you aren’t using.
4. Pay Invoices Early
Cash flow can be an ongoing issue for small business owners. You may need to pay invoices at the last possible moment to make sure you have enough cash on hand to do everything you need to keep your business going each month. However, if you can get your cash flow issues under control, you may find that paying invoices early can save you hundreds if not thousands of dollars each year, as many vendors will offer discounts for those who pay early.