• July 10, 2024
  • Posted by General Electric Credit Union
  • 4 read

5 Money-Saving Tips for Small Businesses

Running a small business often means working with tight budgets and seeking every possible way to save money without sacrificing on quality or efficiency. Implementing effective cost-saving strategies can be the difference between thriving and merely surviving. Here are some practical money-saving tips to help your small business do the former! 

Tips to protect your small business’s bottom line 

1. Budget

Effective budgeting helps you manage your cash flow by aligning your income and expenses. This prevents cash shortages and ensures you have enough funds to cover your operating costs. Having a clear financial picture also enables you to make better business decisions and set business goals. Whether it be saving for new equipment or expanding your business, having clear targets helps you stay focused and disciplined, guaranteeing your spending aligns with your long-term objectives.

2. Outsource non-core tasks

Instead of hiring full-time employees for every function, consider outsourcing non-core tasks such as accounting, human resources, and marketing. Freelancers or specialized firms can often provide these services at a lower cost than maintaining in-house staff. Platforms like Upwork and Fiverr, for example, can connect you with skilled professionals who can handle specific projects on an as-needed basis.

3. Implement energy-saving practices

Reducing energy consumption can lead to significant savings on utility bills. Simple changes such as switching to energy-efficient lighting, using programmable thermostats, and encouraging employees to power down equipment when not in use can make a big difference. Consider conducting an energy audit to identify additional areas where you can reduce consumption.

One area you may not have considered updating is your banking preferences! Going paperless not only saves money on paper, ink, and storage but also enhances your company’s environmental footprint. Digital documents are easier to organize, search, and share, increasing productivity and reducing clutter. 

4. Choose low-fee business bank accounts

Opting for the right business bank accounts comes with both immediate and on-going benefits, including: 

  • Reduced monthly fees. Many banks and credit unions offer accounts with low or no monthly maintenance fees, saving you a substantial amount each year. Look for accounts either with no fees or that waive fees when you maintain a minimum balance or meet other criteria. 
  • Lower transaction costs. Business accounts often come with various transaction fees, such as charges for deposits, withdrawals, and transfers. Low-fee accounts typically offer a certain number of free transactions each month, helping you manage your cash flow more effectively.
  • Access to online banking. The best low-fee business accounts provide robust online banking  platforms, enabling you to manage your finances from anywhere. Features like remote deposit capture and fraud-mitigation tools like Positive Pay can save you time and money.
  • Support for small businesses. Banks and credit unions that cater to small businesses often offer additional perks, such as free business checking accounts, business credit cards with rewards, and personalized service. These benefits can enhance your financial management and support your growth.

Implementing these money-saving strategies can help your small business reduce expenses and improve profitability. Consider making the switch to General Electric Credit Union for your business banking needs. From our Simply Free Business Checking account to lending options for small businesses, we have the solutions you need to thrive. Contact our Business Services team to learn more. 

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