Starting a small business is exciting, but it can be scary, too. While you’re working to grow your company, you need to make sure you’re spending wisely so that you don’t overextend yourself and end up in debt. Here are some ways I’ve learned over the years to keep my overhead costs down:
Keep your bookkeeping simple
Keeping your bookkeeping simple is a great way to keep your budget in check. Bookkeeping services can be quite pricey, but if you’re not in need of extensive services, they can be unnecessary. There are plenty of free and cloud-based solutions out there that will enable you to manage all of your business finances on one platform.
If you don’t want to use a paid service, consider setting up your own system with the help of an Excel template or Google Docs spreadsheet.
Be smart with your inventory
You can also keep your inventory to a minimum by:
- Not overstocking. It’s better to run out of the product than be stuck with too much of it, especially if your customers aren’t likely to reorder soon.
- Avoid buying products you don’t need or won’t use. You may not be able to predict the future completely, but try not to take unnecessary risks on items that are likely to go out of style or become obsolete quickly.
- When possible, buy in bulk and then repackage what you don’t need (for example, buying a large bag of dog food and splitting it into individual bags). This will save on packaging costs and give you more flexibility when deciding how much inventory to carry around with you at any given time.
Get free or cheap advertising
If you’re a small business, there are many ways to get free or cheap advertising. Here are some of them:
- Join a local chamber of commerce and/or business organization. These can be great sources for networking, as well as promotional materials (like the free mailers mentioned in section 3).
- Join a local community group or volunteer for charity organizations in your area. These groups and charities often have websites that need content written on how they benefit their communities, so this is another way to get exposure without paying anything!
- You could also try submitting articles about your company’s services to local newspapers and magazines – if they choose to publish it, then it’s more free advertising!
Get a small business credit card that gives you rewards
One of the best ways to keep your overhead costs down is to get a credit card that gives you rewards. This can be done through many different types of cards, but there’s one type that I’d like to focus on: small business credit cards. This small business financing option is designed specifically for people who own small businesses and want a way to save money on their everyday expenses. Lantern by SoFi’s experts recommend, “Compare rates from top small business lenders who match your qualifications and needs as a borrower.”
These are just a few ways that you can keep some overhead costs down. There are many more, but if you follow these simple tips, it will make it easier on your business and help prevent you from going out of business.