5 Easy Ways to Save Money for You and Your Small Business

Jul 30, 2020 by

The Coronavirus pandemic has impacted every country around the world, including Australia. Both personal and business finances have been negatively affected and future economic uncertainty lingers. If your own finances have been impacted, it might be worth finding ways to cut unnecessary costs that are slowly draining your funds. 

Below are some easy ways to save money for yourself and your business. These are options you may not have considered before. 

#1 – Review your insurance premiums

Today is the day to look for places where you’re leaking cash, a slow drip, drip, drip of funds that you could really use right now. Start by looking at your personal insurance premiums, e.g. homeowners, car, etc. Then it’s time to check on your business insurance policies too, including your public liability insurance, to make sure your premiums are affordable, and your coverage is adequate. Times are tough and you don’t want to spend more on insurance than is necessary. 

You can do some online comparison shopping by checking out BizCover’s website. Take a few minutes to get a public liability insurance quote. You can get even more coverage information, as well as an estimated premium either online or over the phone. 

If you don’t have a public liability plan, then you’ll want to get one right away. This type of insurance will keep your company from absorbing financial damages and legal fees associated with negligence, including property damages and personal injuries. By having a public liability policy, you won’t have to dip into your company’s checking account should you find yourself dealing with an unhappy client. 

#2 – Renegotiate your rent or mortgage

It’s very likely that your biggest personal expense is your rent or mortgage. There are a few different ways to determine if you’re paying more than you should for your rent or mortgage. For instance, search online for a broker that can compare what you’re paying versus what others are paying in your community. Perhaps it’s time to refinance your mortgage or find a new rental home that charges less. 

About your small business, you’ll want to do the same thing for your office space, storefront, or warehouse location. How can you lower your monthly property costs? What are other businesses paying for their commercial rent or mortgage in your area? Should you use this downtime during the pandemic to move into a lower cost workspace? Or maybe you can renegotiate your rental fees with the property’s landlord? 

#3 – Share your space to save money

If getting a lower mortgage or leasing fee isn’t possible, then you may want to consider sharing your space. This goes for both your home and your workplace. 

In the case of your business, you could sublease some of your warehouse or office space to another small business owner. By doing so, you’ll be helping create income for your company and lowering costs for another SME. 

In the case of your home, you could find a friend or family member that would be willing to rent a room from you. A spare bedroom could turn into a way to create additional income. Start out with a short-term lease (maybe three or six months) so you and your flatmate can make sure it’s a good fit before proceeding. 

#4 – Negotiate your bills: utilities, supplies, etc. 

Those ongoing, never-ending, forever bills are where most people and businesses spend the biggest chunk of their earnings. We’re talking about things like the internet, phone, gas, electricity, memberships, subscriptions, and more. Our suggestion is to shop around for the best rates on utilities, supplies and other costs. You’d be surprised how many services can be negotiated for a better price. 

In the big picture, organizations like your utility providers and material suppliers, want to keep your business. They have bills of their own to pay. So, don’t feel shy phoning and asking for options. Most companies like to reward their loyal customers and they understand we’re all working (and living) during a very uncertain time. 

#5 – Forget Savings, Start Selling

Now that you have a few suggestions of ways to save money, it’s time to think about making money. By selling personal items that you aren’t using or don’t need, you can generate a little stream of income. For example, lots of everyday people sell gently used (and unneeded) furniture, clothes, electronics, appliances, and other things through smartphone apps (e.g. Mercari, Facebook Marketplace). It’s popular, it’s easy, and you’ll have a side hustle for your personal life. 

When it comes to your business, if you can still service clients or sell products under the current social distancing guidelines then it’s time to start following up on prospects. You want to shake the tree and find some sales opportunities. 

More sales are just as good as more savings when it comes to both your small business and your personal life. Don’t waste a minute before you try out our tips to increase your bank account balance. Devise an action plan and get started today. 

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