As a business owner or manager, you’ve probably tried to save money wherever you can in the business without sacrificing the quality of your products or services. Fortunately, there are options and money-saving ways to help grow your small business without breaking the bank.
Take advantage of your financial institution’s services – Every business must open a commercial banking account, so why not use the account and the institution’s services to your full advantage?
An article in The Wall Street Journal suggested that you may be able to save money on fees and added services from a financial institution.
“Be sure to pin down fees for various services. Some may be bundled, so comparison shopping [when choosing your bank] is a must. [The fees] may be negotiable, depending upon your company’s history and size.
Additionally, “[financial institutions] may offer added benefits such as online services that help save time and money on tax and accounting assistance. These may include sending invoices, collecting payments, payroll and loan applications.” Since you already have a relationship with your financial institution, outsourcing such needs with them will help you save money on the associated fees.
Loans and lines of credit – Business owners should have a long-term plan and financial strategy in place from the start of their business, including lines of credit for future growth.
In an article in Entrepreneur, James Stephenson, author of “Ultimate Start-up Directory,” recommended that business owners plan for future fiscal needs by attaching a line of credit to the account when it’s opened. This will help you save money in the long run, so you have an established line and won’t have to dig into profits for future business needs.
An article in The Wall Street Journal suggested looking into partnered loan services with your financial institution, such as loans backed by the Small Business Administration, to finance future business growth and help save money.
“Federally subsidized loans help protect the [financial institution] against default, which makes it easier for [the financial institution] to lend money. SBA loans are available to businesses whose credit histories, cash flows or collateral would be inadequate for them to obtain traditional bank loans, and the SBA typically offers more flexible repayment terms,” reported The Wall Street Journal.
Insurance savings – Another business must-have is a sound insurance policy. If you plan ahead, you can purchase insurance and save money for your business.
“Buying appropriate insurance up front saves money in the long run,” says Jeanne Salvatore of the Insurance Information Institute. “Consider what situations would be catastrophic to your business and protect yourself with adequate insurance.”
An article in Entrepreneur suggested checking with your trade association or local chamber of commerce for competitive group insurance rates. You can also elect to raise the deductible on your insurance plan to lower your monthly premiums. Make sure you don’t put off purchasing coverage, or you could risk having to dip into your profits should an issue arise.
If you need more tips on how to save money and grow your business, contact us and we’ll be happy to guide you.