HomeBusinessPenny Pinching: 4 Frugal Financial Tips for the Modern Business Owner

Penny Pinching: 4 Frugal Financial Tips for the Modern Business Owner

Running a business is one of the most difficult activities a person can do. Forbes reports that the business failure rate is as high as 80 percent. One of the most common reasons companies fail is due to out of control expenses. If you have trouble with controlling costs within your company, here are four tips that can help you to run a more frugal and profitable company.

Penny Pinching: 4 Frugal Financial Tips for the Modern Business Owner

Implement Telecommuting

Some business owners are suspicious of telecommuting due to the fact it involves giving up the direct physical management of certain employees. However, the benefits of telecommuting are very clear. An article by Entrepreneur stated that telecommuting can save companies $11,000 per employee per year for workers that spend half their time working from home. Telecommuting can also lower turnover. As we all know, training is one of the most expensive costs a company has to pay for.

Update Your Boiler

There are many fixed costs involved in running a business. If you own stores, offices or factories, one of these overhead expenses during the fall and winter months will be heating those facilities. However, there are ways to slash this overhead. If you have an older boiler, you should consider getting an upgrade. Newer models are far more energy efficient and can help lower your heating expenses significantly. Working with a professional like Nationwide Boiler or a similar business can help you be sure that your updates will actually save you money in the long run.

Choose Cost-Effective Advertising

A lot of companies waste a lot of money on marketing. It’s easy to understand why. Advertisements placed on TV, on radio, in magazines and in newspapers can be exorbitantly expensive. Thankfully, business owners are not limited to these choices in the modern age. You can choose instead to market your products on the internet. The great thing about digital advertising is it’s cheap and extremely easy to track. You can, for example, only pay for an advertisement if an internet user clicks on it to reach your online store. This kind of tracking is impossible with traditional advertising choices like print and TV.

Use the Cloud

Another business solution that could save you a lot of money is the cloud. Using a cloud provider for data storage, software or even your entire network can save thousands of dollars a year. For one, there will be less of a need to have IT professionals in-house since all the technical work will be handled on the cloud provider’s end.

Running a business can be extremely difficult especially when it comes to finances. While costs can sometimes be high, there are ways to bring those expenses down. Consider different ways your company can save money and slash overhead.