Cost savings for small business is the topic of today’s guest post. There’s more than one way to save money, but every idea requires careful planning to execute correctly.
The new year rung in more uncertainty for many small business owners across the country. Entrepreneurs are still complaining of lackluster consumer demand, and with economic changes threatening to raise operating costs in 2014, businesses are scrambling.
Owners struggling to makes ends meet may be feeling pressure to cut staff, but this isn’t the only option to reduce costs and raise the bottom line. Below are some tips for small businesses to save money in 2013:
Shop for a Better Credit Card Processing Rate
It only costs pennies per transaction, but over time, businesses can spend a considerable amount of money on credit card processing fees. You can save a sizable chunk of change by lowering your transaction fees and eliminating hidden costs. Call your vendor, or better yet, call their competition. The best providers will offer you with a quote tailored to meet your financial and customer support needs.
Take Advantage of Tax Credits
While the recent deal to avert the fiscal cliff focused on tax cuts, Congress did retain a slew of small business incentives. Section 179, for example, allows business to expense certain types of property up to a limit of $560,00, according to Section179.org. Through this incentive, $350,000 worth of equipment would have a true cost of $257,040. The deal also extended the temporary exclusion of 100 percent gains on small business stock, which provides incentives to invest in small businesses. This helps young startups trying to avoid further personal investments attract outside investors. In addition, these are tax credits available to employers who hire military veterans or people belonging to certain disadvantaged groups in 2013.
Market Via Social Media
Small businesses often spend a significant portion of their budget trying to spread their brand via traditional marketing methods. Enter social media marketing; it can help you reach consumers through platforms like Facebook and Twitter, and it’s free. The benefits are clear, particularly to B2C operations: adult social media users are 47 percent more likely to be heavy spenders on clothing, shoes and accessories, according to SocialMediaExaminer.com
Small businesses can offset marketing and advertising budget cuts by boosting their social media presence. Effective social media marketers post regularly and interact with their followers. To attract a following, try using a traditional marketing tool: the coupon. Not only will you’ll generate revenue, you’ll also gain regular access to consumers on a personal level.
It’s the Digital Age, so why not ditch that dependence on paper? Not only is it more difficult to organize, but conducting business on paper adds an unnecessary expense to your budget. Instead of using a traditional fax machine, scan and send documents through a digital fax service or email. The savings you gain from reducing paper expenses may not be much, but every bit helps in a turbulent economy.
Jennifer Solci is an Indianapolis consultant who recently received her MBA and has been writing for the past two years about how business owners can better manage their finances and data.