There’s no denying the fact that you have to “spend money to make money.”
However, there’s something else you need to remember: the higher your business expenses, the lower your profit.
With this in mind, you must have a strategy for spending wisely, keeping expenses down, and in some cases, eliminating wasteful spending altogether.
Of course, this is easier said than done. If it were simple to keep business expenses down, every blogger would be taking full advantage.
Below, we’ll examine five top tips for saving money in regards to expenses. Even if you only implement one of these, it could have a major impact on your bottom line.
1. Consider How Much Space You Need
Do you need that huge office? Is there any way to reduce the amount of space that you require? Is it possible for some or all of your team to work remotely? Consider using something like Google Hangouts to communicate and have meetings.
These are all questions to address as you realize that the cost of renting office space is holding your blogging business back from pulling in more profit.
This may be a big change, but it can lead to cost savings as well as a variety of other benefits. Remember, you’re a single person with a single mission: to grow your blog as large as possible. Do you need to pay for office space to make this happen? For many top bloggers, it all started on a desk in a spare bedroom or basement.
2. Outsource Some of Your Work
Go back in time many years and outsourcing wasn’t nearly as popular as it is today. Fortunately, this trend is on the rise, meaning that you can cut expenses in some ways.
For instance, outsourcing means you don’t have to find space for a full-time employee. Furthermore, it means less money out of your pocket in regards to both salary and benefits.
Here is a statistic shared by Udemy:
“Outsourcing has grown in the last decade, and recent statistics show that more than two million jobs were outsourced in 2013, with many of those opportunities going to workers in China and India. 43% of the IT sector was outsourced, 26% of the distribution is now taken care of offshore, 12% of call center jobs are found overseas, and 38% of research and development (R&D) is taken care of by workers outside of the country.”
Outsourcing also allows you to be a more flexible blogger. Sometimes you may not have much work to do and other times you may have too much. Outsourcing is a great option when you are overworked. Allowing you till collect the paycheck but at a fraction of the work.
3. Buy Used or Minimal Products
When the time comes to make a purchase, especially a physical item for your office, consider your pre-owned options before buying new.
From computers to printers, from desks to filing cabinets, if you keep an open mind you will find many used items in your local area.
The amount that you save depends on many factors, including what you’re buying, the condition of the item, and your local market.
Regardless, nothing changes the fact that buying used is a great way to save money. If you get into the habit of doing this, it can save your company thousands of dollars over the course of a year.
Do you really need that $2,000 iMac? Here at Blog Hands most of our writers use Chromebooks which cost less than $300.
You may also be interested in “Why a Chromebook is a Great Gift for a Blogger”
4. Use Free Software
With so many software applications to choose from, it’s easy to spend recklessly in hopes of finding a solution that will solve a particular need.
While there is nothing wrong with investing in software, remember this: you may be able to find a free alternative to a popular paid solution.
One of the best examples of this is spending $100+ to purchase a Microsoft Word license. Although this is a worthwhile purchase, you can rely on Google Docs and gain access to virtually the same level of functionality. It also stores all your writing in the cloud so it’s less likely you’ll lose important work.
It isn’t always better to choose free software, but this is something you should consider. If nothing else, you’ll end up with a high-level overview of the industry, which puts you in a position to make an informed decision.
Other examples, like free antivirus protection software. There are also free tools for communicating in real time with customers and prospects. If it’s free, give it a try. You can always upgrade to a paid solution in the future if need be.
5. Educate Your Employees on Ways to Save
As a small business owner, you may keep close tabs on your bottom line. This means knowing exactly how much you’re spending on expenses every month.
Unfortunately, your employees may not have the same desire to save money. For this reason, you need to educate them on the many ways to save.
This could include but is not limited to:
- Discussing options for curbing expenses when traveling.
- Providing advice on how to save money around the office, such as by only printing when necessary.
- Providing rewards and positive feedback to those who take this seriously.
When your employees are on the same page in regards to cutting expenses, you’ll find it much easier to reach your short and long term goals.
Note: if you don’t have any employees, you can focus solely on your personal spending. In many ways, this is preferential, as you’re the only one spending and saving.
There will never come the point when you have no business expenses. You know that you have to spend money to make money, and there’s nothing wrong with that.
Just make sure you have a system in place for keeping business expenses down. With the right approach, it’s much easier to save money and boost profit!
Chris Bibey is a corporate blog specialist providing content creation, marketing, and consulting services to companies of all sizes spanning a variety of industries.