For owners of small technology businesses, keeping operating costs low is essential to maintaining strong revenue and keeping the business healthy overall. So where can you cut back on spending without sacrificing the quality of your work?
Consider these unconventional cost-saving strategies, which let you save money without compromising your performance on client projects.
- Encourage telecommuting. If your team members all work from home once or twice a week, your business can save money on electricity bills – stagger work-at-home days, and you might even be able to downsize to a smaller office, which could save on rent.
- Work with contractors and freelancers. Working with new team members on a freelance or temporary basis saves you money on benefits and allows you to test potential full-time hires before committing to them, potentially saving money on recruitment.
- Add interns to your team. In this economy, many college students are happy to work for class credit or experience rather than dollars. Particularly strong interns automatically enter your prospective hiring pool, saving you time when you next need to hire a new team member.
- Track your advertising better. If you aren’t tracking the ROI of your marketing efforts, it’s time to start. This can be a time-consuming process, but knowing what works and what doesn’t allows you to spend your money more effectively in the future.
- Barter. Need your pipes fixed? Find a plumber who needs a new website. Trading services for services is easier than ever in the Internet age: a quick online search yields dozens of websites that facilitate bartering transactions.
- Start unplugging. If you’re like most technology businesses, you rely heavily on gadgets to do your work. Those gadgets, unfortunately, guzzle electricity – even when they’re turned off. Unplug equipment whenever possible and watch your electricity costs dip.
- Update your insurance. If you’ve made changes to your business in the last several months, you may qualify for new (less expensive) insurance coverage. If you haven’t made changes, consider asking your agent about bundled insurance packages (such as the Business Owner’s Policy), which offer coverage for a discounted premium.
How have you cut costs at your tech firm in recent months? Share your suggestions in the comments!
Writtten by Brenna Lemieux - check her out at Google+ or Twitter