Technology has made it possible for startups and small businesses to do more with less. By implementing the right technology, small businesses can reduce their operating expenses, making it easier to compete with larger businesses.
As we know, small businesses do not have a big budget to finance their business so it’s absolutely necessary for them to eliminate their unnecessary expenses and only spend money on things that are necessary for business growth.
Startups and small businesses should implement things that would really help them financially. In this article, you will get to know about ten effective tech tips for small businesses to keep their financial health in check.
Effective Tech Tips for Startups & Small Businesses to Reduce Operating Expenses
1. Shift your phone system to the cloud
If you are still using a traditional phone system from your local phone service provider then you are paying way more than necessary. It is about time you shift your interest to cloud phone systems.
According to a report, VoIP phone systems save 90% on initial cost, 40% on local calling costs, and 90% on international calling costs than traditional phone systems.
Cloud telephony eliminates the requirements of additional hardware infrastructure in your office or home-based office. Not only that, you can easily use your existing devices like smartphones, laptops, etc. to handle inbound and outbound business calls.
Cloud phone provides virtual phone numbers from any country of your choice at a very cheap cost unlike your boring traditional phone system offering only local numbers. With cloud phone, you can expand your business to foreign lands and generate more leads.
The Cloud phone system does more things for less money. It has features like Automatic Call Distribution, Interactive Voice Response, Intelligent call routing, and more that will enhance your calling experience to the next level.
Thanks to Mor Soloff, Owner Leads Rating
2. Minimize the usage of paper
You will find paper laying around here and there in every office. Paper is an important utility for all businesses because of one word-paperwork.
Offices often need to purchase paper, printers, inks, pens, cartridges, postage, mailing supplies, etc. It doesn’t seem expensive at the beginning but the total cost is more than you would want to spend.
Fortunately, you can now use digital tools and go paperless. Digital tools such as Google workspace, digital invoices, emails, etc. are replacing papers and there is no need to print on paper unless it’s necessary to print.
Also, cloud storage has been a blessing to put all the documents and store them in the cloud rather than paper files and lock them in a file cabinet.
Such a transformation can save you a lot of money and eliminates unnecessary tensions like having no papers for printing documents and you got to go to buy more papers.
Thanks to McNaughton, Owner simplelifesaver
3. Audit paid software and services
Have you ever ended up purchasing too many software and services for your business? At one point, all the software and services may look really important for different types of tasks but slowly you won’t use them all.
You are paying a monthly or yearly subscription for that unused software and tools. It’s a total waste of money. You are regularly paying for things that are no longer in need or you used them barely.
Give attention to which software and services you use and which you don’t then cancel the subscription for the unnecessary software. They are expensive and affect your finances.
In case you may want to use that software in the future then you can look for alternatives. There are software and services that are similar to branded software but free or way cheaper.
Thanks to Daniel Di Cerbo, Owner, of Willowdale Equity
4. Implement partial or full remote work
For small enterprises, renting an office space might be ridiculously expensive. But there is a solution. You can choose to work from home. Since the COVID pandemic, the percentage of businesses working remotely is really high.
Especially for startups and small businesses, working from home is financially more sounding than having an office. You can easily set up an office in your home with very little expense. Also, you won’t have to buy office equipment for your staff.
Combine work from home with cloud-based software and services then your operating expenses will be very low.
Remote work is an excellent option for entrepreneurs because they can now concentrate on their business rather than struggling to pay office rent.
Many remote working applications, such as Trello, KrispCall, Slack, Microsoft 365, and Google workspace can help you manage your office work, employees, and clients/customers. You can effortlessly communicate with your employees and customers just as you would in a physical office.
5. Reduce the use of credit cards
Being early in the business, it’s really tempting to use credit cards more than necessary to support the business. But it will rather hurt your business than assist it.
High interest rates, annual charges, and processing fees of credit cards will become a big problem for you. You will end up using your office budget to pay back your credits. Credits card debts are nightmares for people as it rises way quicker than you can imagine.
Use your credit card wisely, spend less than the limit on the credit card and make credit card payments on time. Paying little by little will reduce your financial load way less. This will not only increase your credit score but also increase the chances of getting financial loans from the bank.
Thanks to Stephen Alaimo, Owner of Biotech Termite & Pest Control
6. Outsource your task
When you manage a business, you have a lot of work to accomplish every day. However, some tasks necessitate the use of specialized technologies or instruments to complete.
As a small firm, purchasing such machinery can be prohibitively expensive, and you won’t be able to add to afford such expenses.
Fortunately, you can have the option to outsource your task to a third party. This third party will have the necessary equipment to manufacture your goods. This way, you have to only pay for the product and avoid having to buy the equipment yourself.
I’ll give you a quick tip. If you are unable to hire extra employees in your office, there is also an option to outsource your task to a freelancer or hire someone on a contract basis.
Thanks to Yuri Grakovski, Owner, Hardwood Flooring
7. Don’t spend on brand new items
There are numerous items that you need to purchase when running a business. Especially, the office equipment and furniture are must-buy items. However, buying things brand new will be really expensive and directly affect your financial plan.
As a result, you can purchase secondhand products such as smartphones, printers, and computers. There are several stores that sell used products at a very low cost after comparing with the prices of new ones. You must buy them to reduce expenses as much as possible. Even though these items are used, there are very functional to help you with your work.
On the other hand, you can look to purchase refurbished products such as electronic devices, furniture, etc. that have been restored to look like new. These things are more expensive than used items, but they are less expensive than new ones.
Thanks to Sonya Shikhman, Owner dul lawyer
8. Focus on online marketing strategy
A business requires marketing so that people become aware of your business as well as products and services. The performance of a marketing campaign decides the fate of the popularity of your business products and services.
However, marketing is expensive, especially for startups and small businesses. Since marketing is not a one-time campaign, it will cost you a lot of money. But businesses cannot ignore it because it keeps your business and products alive.
Not to worry much. With online marketing, you can advertise your products without even spending a single cent or pay way less money than large companies.
The first place where you can advertise your products is on your own website. Once you pay for the website, whatever you post on the website is completely free.
The second place is social media and this is a place where you don’t want to miss out.
Social media platforms like Instagram, Facebook, Tiktok, Twitter, etc. are some of the best places to advertise your business products. With billions of active customers, you can attract the interest of your target audience in a very quick time.
The best thing about social media is that it is free to use and directly sell to the customer without the help of a third party.
Thanks to, Lanny Tuchmayer, Owner slip and fall lawyers
9. Less power results less expenses
While running a business, power consumption can start to look really expensive. During office time, the office needs power for computers, lights, printers, machines, etc. All this equipment could really hunt your electricity bill in a long-term period.
So, what can you actually do? The answer is going green. There is a worldwide famous phrase: Go Green Save Energy.
This will certainly help you reduce your office electricity bill by a long shot. There is numerous energy-saving equipment that gives the same performance as non-energy-saving equipment but consumes way less electricity.
Equipment such as OLED light bulbs, energy-saving rated machines, solar-powered devices, etc. Another thing you can do is, switch off the equipment when not in use.
10. Look after your finances
It’s really important for every business owner to work around their budget. Every part of the business involves some part of the budget.
So for small businesses with a small budget, they have to plan their budget in such a way that they spend money only on things they are needed for the business
Small businesses can use financing solutions to handle all their financial plans, track their budget expenses and keep an eye on their investments. Tools such as Hubstaff, Mint, etc. are great for looking after your finances. It also allows you to make financial notes.
To sum up
For startups and small businesses, keeping up with the expenses can be a really tough job. Since they have small budgets, it’s important to spend on things that are only necessary and avoid spending only on unnecessary stuff.
If you have a small business or startup then you need to follow multiple tech tips and advice to know about where you can cut down expenses. It will also show you where you are losing money. Overall, saving money here and there can really help you to keep your business financially stable.