There are lots of reasons to start a home-based business as you probably know already if you have started out on your own small enterprise.
One of the main reasons is to make a little (or a lot) more extra money. However, this can be difficult as running a business necessitates a lot of spending. Hopes of making a profit can be dashed when considering your various expenses, although there are things you can do to save money across your business.
Such as? Well, here are some ideas. Have a read and then take the necessary steps to improve your chances of making a profit.
#1: Save money on your marketing
You know marketing is important for your business as, without it, your chances of reaching new customers will be dramatically decreased. However, you don’t need to blow your entire budget on advertising. Yes, you could reach a lot of people by taking out ads in your local paper and by printing off hundreds of business cards and flyers. You could also pay for ad space on the radio or on local TV. However, there are cheaper ways to market your business.
For starters, you could focus on SEO by making the necessary tweaks to your website to ensure it ranks above your competitors on Google. You could post regularly on social media too, and ask friends, family and existing customers to share links to your website on their social channels. You should also take advantage of your free Google My Business listing to ensure your business appears in local searches online.
Here are some other affordable marketing ideas that will profit rather than run dry your business finances.
#2: Save money on shipping
Shipping your customer orders isn’t cheap but there are things you can do to make it cheaper. For one, you could cut back on your packaging, not only to save money on materials but to reduce the weight and size of your packages too. This is one way to save money when using courier services as you will be charged less for smaller and lighter packages.
Some shipping companies will provide the materials you need for free. UPS and FedEx are two companies that have been known to provide businesses with free packing supplies, so check their websites to see if you can take advantage of this.
A way to win customers to your side is to offer free shipping. This is fine but you will then be liable for the costs. So, consider charging your customers a share of the expense to make life easier for you. Alternatively, raise the price of your products a little to offset the cost of shipping.
#3: Save money on business supplies
There are all kinds of supplies you will need for your business, but you don’t always have to pay premium prices. Shop around different suppliers and try to find the cheapest prices. If you already have a supplier but find cheaper offers elsewhere, let your supplier know, as they may reduce their costs to keep you as a customer.
Buying in bulk is a good idea as you will often get yourself a discount this way. So, for those items that you might regularly need, such as printer ink and paper, buy extra at reduced prices. This is obviously a way to save money but taking a lesson from the recent pandemic, you will also have extra supplies in stock, which is just the thing if another crisis hits supply companies.
And finally, save money on transaction fees if dealing with overseas suppliers. You can send money to the UK and other places globally at reduced costswith financial platforms akin to Airwallex. Follow the previous link to learn more about their services.
#4: Save money on tax
Being self-employed, you will be responsible for your own taxes. If you don’t budget for these you might find yourself in financial trouble later. And if you don’t claim your tax deductions, you will pay more than you need to.
Our advice is this: Get an accountant, especially if you struggle to manage the tax side of your business. They will help you get your finances in order, advise you on tax deductions, and offset the chances of any tax form mistakes that could prove costly. Here are some other ideas on reducing your small business tax bill, so have a read for some helpful information.
These are just a few of the things you can do to save money in your home business and there are plenty more ideas online. So, don’t run the risk of not making a profit. Follow the advice we have given here and increase your finances. Then make the effort to put some of it into your business savings as this will help offset those larger expenses you face in your business.