The good news is most business cost-saving ideas don’t require much sacrifice and can benefit your business in more ways than one. This blog will explain how to save money as a business owner by sharing our top four money-saving tips.

Healthy cash flow is at the heart of every business. Not only does it help keep the lights on, but it keeps suppliers and employees happy. But having some extra cash in your business’s saving account can also help with the following:

• Prepare for unexpected events — From a sudden bill to faulty equipment, it’s natural for things to go wrong in business and impact your cash flow. And if we’ve learnt anything from the last few years, it’s that small businesses can no longer just rely on sales to keep things running. Regularly topping up your business’s savings can help you stay prepared for the worst-case scenario and means you don’t have to approach a lender and take on debt.
• Explore new business opportunities — Whether you’re looking for larger office space, expanding your products or services or hiring new staff to tick off business goals, you’ll need a decent amount of savings. While many businesses turn to loans and other credit financing options, it’s important to remember that the less you need to borrow, the less you’ll need to repay with interest.
• Stability — Making the effort to save ensures that your business doesn’t get complacent with the profit it generates and how much it spends. Having this peace of mind also helps you feel comfortable when taking on new challenges, as you’ll have ample security to fall back on.

1. Reduce operating expenses

One of the biggest and most obvious money-saving tips for small businesses is to look for areas where they can reduce their day-to-day spending. The easiest way to discover opportunities for your business to save is by going through at least three months' bank statements and noting where your money is going.

Most of the time, a business is unaware of where its money is going, so this may give you an insight into where you can cut back. It is also worth checking in with your team to see what products or services they could do without. To get you off to a good start, we’ve listed some common ways to reduce your operational spending below:

• Going paperless with your billing
• Shopping around to get a better deal on utilities
• Cancelling or unsubscribing from services you no longer need or use
• Noting which bills you can pay in advance to receive discounts

Reviewing your bills and expenses is a habit you should be comfortable with regularly doing, as it can help you stay ahead of any spending changes or patterns. There is no definitive answer on how often you should be doing this but aim to comb through your financial records once every three months.

2. Accurately estimate expenses

Speaking of spending, it’s important not to overestimate expenses regularly. Having a small business budget where you can accurately forecast your upcoming financial obligations could save you from unnecessary spending, allowing you to reinvest the funds into your business.

Underestimating or lowballing your products or services can also cost you revenue, so be sure to research your competitors to find your pricing sweet spot.

3. Clear your debt

While this may seem counterintuitive, whether you’ve previously taken out a loan or have a business credit card, debt tends to accumulate over time, whether in interest or late fees. Do yourself and your savings a favour by making “getting debt-free” a priority. This way, you can work towards running your business on profit alone.

Once your repayments are made, you’ll free up more cash in your monthly budget, which can be used however you like.

4. Get familiar with innovative apps and platforms

Our final cost-saving idea for businesses does more than just help you save some extra coin. These days, there are tools, apps and other resources that can help businesses with just about anything, from bookkeeping to managing workflow. But if you want to positively impact your business’s spending, upgrading your invoicing software could be your best bet.

Invoicing plays a massive role in sourcing cash for your business, so having software that streamlines the process is essential. Not only do digital invoices cost significantly less to process, but invoice automation also reduces the costs associated with invoicing errors, such as typos or incorrect customer information — and what better platform to get started with than Marmalade?

If there’s one thing Marmalade wants to put an end to, its small businesses being held back from their full potential. Marmalade is an innovative way for small businesses to get their invoices paid, increase savings and reach their financial goals. We help SMBs turn their unpaid invoices into cash and handle the hassle of chasing unpaid invoices.

Marmalade is an interest-free service and features no hidden fees or lock-in contracts, helping you keep every dollar invested in your business. We want to empower small businesses to take control of their cash flow, which is why we offer more than just an easy-to-use platform.

Over at our blog, you’ll find a wide range of small business tips to ensure you’re on track for success. So, whether you’re looking to understand how a business can save money or manage cash flow problems in your industry, you can look to Marmalade as your number one resource. Unlock your business’s future savings by creating an account with Marmalade today.