Saving Money Is Good for Business

When you’re on a shoestring budget, and what startup owner isn’t, it can really pay to save and scrimp. In the event you’ve forgotten how valuable a hard-earned penny is, we’ve come up with a couple of ideas that can save you money and boost the bottom line for your business. Some tips will save you more money than others, but in the end, the tips you read about here could save you a bundle. 

3PL 

To put it simply, 3PL refers to supply chain management and logistics that are outsourced, including things like warehousing, inventory management, pick and pack, and transportation, as well as a few other services. If you reduce 3PL shipping cost, you’ll be saving money so your bottom line can become a bit healthier. You can do this by hiring a trusted 3PL provider and shopping around a bit before you do.

Payroll

Did you know that this is an area where you can save a bit of green? Yes, you can save money on your payroll if you utilize independent contractors. See, employers typically don’t need to pay or withhold any taxes on their payments to independent contractors. However, be careful that they fit the IRS’s description so you don’t have to face any penalties.

Piggyback Advertising

Including your advertising material with your other mailings, like in invoices, can save you money on postage as well as other costs. Also, you can save money on advertising by making the most of any point of purchase events by tucking newsletters, coupons, or any other types of promotional fliers right in the bag with whatever your customers purchase. And face it, who doesn’t like to save money on advertising?

Be Mobile

As you probably know, the costs of obtaining a permanent location for retail can be prohibitive. You can easily spend $100,000 or more, and the leases can be as long as 10 years. That said, things like kiosks, carts, and other types of temporary spaces might be an easier way to get your foot in the door and there’s a lot less risk involved. Typically, up-front costs for a cart or kiosk can be as little as $10,000. License agreements for kiosks and carts tend to be shorter and are typically renewed either on a month-to-month or yearly basis, depending on where they’re located. Arrangements such as this make it simple for entrepreneurs to come in and try it out for a bit, and then if their product isn’t selling, they can shift to a different product line or close the whole thing up and move it to a different location.

Printer Cartridges

Check for a local supplier of recycled printer cartridges. If you do a lot of printing, this can save you quite a bit of money. On the other hand, if you go paperless, you can save money on paper, printers, and cartridges all while doing a bit to reduce your carbon footprint. 

Finally, Barter

Swapping one service or product for another is a fantastic way to avoid the outlay of cash and unload merchandise that might not be moving as quickly as you’d like. If you don’t feel comfortable dealing directly with other businesses, you can hire a barter broker or join a local commercial barter exchange or club. 

The tips you’ve read about can save you a great deal of money in the long run. Some tips will obviously save you more money than others and some might be more or less feasible for your specific needs, but each of them can help you increase your bottom line.