One of the biggest challenges a small business faces is having enough capital. Financing is always a valid temporary solution, but will inevitably increase your stress level. Below is a list of the top 5 innovative ways you can minimize your daily operating costs and can grow your business.
- Rent or lease equipment
In the frenzy to reduce cost, many small businesses are now realizing that renting or leasing equipment is a better than traditionally purchasing your capital assets. This forward thinking is a great way to save money, which can consequently be allocated towards things like improving your product/service. Renting equipment does not only require minimal initial outlay but can also help avoid being stuck with obsolete equipment, which could be detrimental in a dynamic industry. In accordance with the CRA, renting or leasing equipment can even sometimes be fully deductible, since it is seen as “ direct expense to your business”.
- Outsource administrative functions
For some outsourcing just sounds like incurring more cost, for something that could be prevented if done personally. However, as you will see the benefits of finding someone else to do your administrative task outweigh its potential cost. The overall idea behind outsourcing is essentially reducing the time spent on daily administration work, so you can focus on your core competencies and invest in projects that will grow the business. A lot of the times small business owners do not have the expertise to properly track their financials and thus cannot decide if they should try to contain costs, increase revenue or start financing. By outsourcing your administrative functions you will not only be able to track the things you want, but also given suggestions on ways to improve the company’s financial. Outside professional help can also be tax deductible, thus reducing the overall cost of outsourcing business functions. In essence, there are many reasons to spend the extra money and receive the added benefits of professional help.
- Hiring Interns
Hiring interns is another great way to reduce operating cost, while ensuring your business keeps on growing. Many universities and colleges look to collaborate with local businesses to offer students internships as this increases their credibility. While students scramble to find good job experience, many of them look out side their local area, so posting opportunities on sites such as “Urban Interns” can increase your chances. Students bring current, new and fresh ideas to the table that would otherwise be overlooked from others. Not only are they driven to succeed and get great references but also place greater importance on getting experience to land an ideal job afterwards. In essence, their passion for the right experience makes it easier to hire them and perform well.
- Paperless office
From all the smart and innovative ways to save money, implementing a paperless office is probably the easiest of them all. “According to research by Xerox, about 40% of office paper is discarded within 24 hours of anyone printing on it.” Now this may not seem much immediately but over a long period you will find yourself spending a lot of money. Not only is storing your documents electronically more cost-effective but they can be accessed from anywhere and easily tracked. They are many online platforms such as Google Drive, Microsoft Office Live and Dropbox to jump start this new initiative.