In a startup business, it’s not just about getting more revenue to become successful; it’s about your profitability. To improve your margins, you need to track your expenses and cut your costs where you can.
Tracking business expenses often show that organizations spend too much on business services and supplies, such as stationery and promotional materials. Here are some effective ways to save in this area to boost profitability and bolster margins.
Look for Deals Online
Startups are no longer relegated to working with big box suppliers for their business supplies. Online shopping has made it possible to get stationery and promotional materials at an affordable rate. Look at the suppliers available and compare prices, taking advantage of coupons and discount codes (see more at https://www.dealnews.com/s898/Vistaprint/).
Online suppliers have the benefit of keeping their costs low due to reduced overhead. If they don’t have to pay for a storefront and people to manage it, you don’t have to pay the inflated rate to cover those business costs. Take a page out of online supplier’s books and cut where you can.
Buy in Bulk
Take advantage of bulk discounts when purchasing business supplies. It might cost you more to buy 500 business cards at a time than 250, but in the long run, each individual business card will cost you less.
The same logic applies when purchasing promotional materials and even booking someone to design your graphics. A freelancer who sees the promise of more work is likely to offer a discount on their services. If you can bulk tasks together into one project, you’ll be able to get further discounted rates on your business supplies.
Wait for Free Shipping
In addition to buying in bulk, keep an eye out for free shipping options. Many suppliers will often offer free shipping as a business perk. Others will offer free shipping over a certain purchase amount or at various times throughout the year. Whenever possible, try to bulk your shipments strategically to take advantage of these offerings.
Shipping costs, especially for large orders, can be one of the significant challenges with using online providers for your business supplies. By planning accordingly, you can save hundreds or even thousands every year on shipping costs.
Go Paperless
Millennial shoppers spend $600 billion annually on consumer goods. With environmental consciousness and corporate social responsibility being a hot topic in recent years, it’s unsurprising that millennials are far more likely to purchase from an organization which prioritizes green initiatives.
Making the shift toward a paperless business will not only save you money on supplies, but it will also create a strong marketing opportunity. Reserve printing for when it’s absolutely necessary, using cloud sharing and storage instead. Create policies and initiatives within your organization to encourage your people to cut back. While pens, paper, and staples seemingly cost pennies, they add up over time. Eliminating the need for these tools will save your business thousands.
Trade Services
One of the best ways to save business costs is reverting to a barter system. Team up with local businesses to exchange services. For example, if you run a bookkeeping business, trading your time at year end in exchange for advertisements from the local print shop is an effective way to grow your businesses without spending cash.
Using this system also encourages you to prioritize local shopping, which in turn will boost your local economy. The more successful your community, the more spending power everyone has.
To save on business services and supplies, you need to think outside the box. Applying the same entrepreneurial spirit shown when starting a business to cost-saving initiatives will allow you to reduce expenses without sacrificing the quality of your offerings.
