Accounting & Finance

5 Ways You Can Make Long-Term Savings For Your Small Business

Written by Andrej Kovačević

At any stage of business, from bouncing ideas around at your first meeting in a coffee shop to an end-of-year review in the boardroom, we want to make savings. Our download culture makes us more inclined to look for the big savings we can make instantly. However, it’s important not to neglect the other ways that our businesses can make long-term savings. Here, we will be uncovering some effective ways you can do just that.

1. Embrace Free Tools

It’s rare to find a modern business that doesn’t rely on technology to some degree. Many businesses need software to help manage and streamline projects between departments. There are some really popular options out there such as Trello, Monday and more. These platforms do offer free trials but then require monthly or annual payments for you to keep using them.

The good news is that you can still find quality project management tools without opening your wallet. Embracing these free tools can save you lots of money over time. Some examples of free alternatives include Bitrix24, Clubhouse, and Pivotal Tracker. Using these online systems afford much of the same benefits that the paid-for services offer but without a price tag.

2. Buy the Cheapest Fuel

Most businesses operate a fleet of vehicles. Whether it’s a large fleet or just a few company cars, any business can make savings in this area. We’re talking about fuel of course. Your business should be aware of fuel cards that offer savings when purchasing fuel at specific locations.

There are many fuel cards available which can make it confusing to know which one is most beneficial for your business. If this sounds like you and has put you off getting one so far, it’s worth getting help by using a fuel card comparison platform. These platforms are excellent at finding the best fuel cards for your specific circumstances in your exact location.

3. Business Savings Accounts

When you begin a business there are so many pressing matters to attend to that you can often rush the decision to find a business savings account. Not all business bank accounts are created equal. Some offer much better interest rates and perks than others. If you’re a startup seeking out a business savings account, it’s easy to get this over with quickly. However, take your time to find a business account with the best interest and extras for your specific business. If you’re the owner of an established business, you may have rushed this part and it’s probably time to reassess your banking options to get the best savings rates. You may not even own a business savings account – if so it’s time you did.

4. Free Up Funds with Freelancers

Having a varied team of in-house talent is certainly a dream for most businesses. Nevertheless, there are still ways to get professionals working for you without negotiating contracts. There are plenty of freelancing platforms at your fingertips where you can find the people with the skills you need. Hiring people in part-time or full-time roles can be more expensive in the long run compared to collaborating with freelancers. This is especially true when you consider wages, holiday pay, insurance, superannuation, and even workers’ compensation fees that you have to pay when hiring.

The financial benefit of working with freelancers is that you can connect with talented workers in other locations. Australia has one of the highest hourly salaries in the world. This means you can often pay the top freelancers handsomely while saving even more money that you would have spent if you were hiring locally. Check out Upwork, People Per Hour and Fiverr to browse people who can enhance your business from a distance.

5. Hire the Inexperienced!

Regarding the personnel you do have in your ranks, there is a way to save big bucks here too. Most job openings ask for candidates to have years of experience to be considered. There is nothing wrong with this. Experience counts for a lot and is great evidence of a person’s credentials in action. However, there are plenty of intelligent recent graduates who are hungry for roles.

These graduates will not have the same salary demands as those experienced professionals, but with little training can be just as good, if not better employees. Finding the best new graduates can be financially beneficial over the next few years due to the money you save in salaries. Not to forget that new graduates bring fresh eyes and are more likely to be up to date on the most recent technology, while some experienced workers can be stuck in their ways with outdated methods.

The above strategies are applicable to most businesses. Yet, it’s certainly possible that some of them are not a viable money-saving method for your business. The good news is that’s not a problem. Implementing just one or two of them is a sure-fire way to help you save a considerable sum in the long run. Naturally, the more you can weave into your business model the more savings there are to be made. Just remember to analyse these methods over time to see their true value to your business.

“The opinions expressed by BizWitty Contributors are their own, not those of BizCover and should not be relied upon in place of appropriate professional advice. Please read our full disclaimer."

About the author

Andrej Kovačević

Andrej Kovačević is the head of production at Melbourne based, independent digital agency, Amebae Online. Andrej's favourite topics to read and write about include marketing and the ever-changing landscape of Fintech.

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