8 cost-saving measures for your small business's bottom line

Brought to you by ComEd’s Energy Efficiency Program. Visit www.comed.com to learn more.

You might think it would be easy for a small business owner to find ways to save money, but they often don’t have access to the tools available to large employers and many cuts can seem drastic. But what small businesses lack in resources, they make up for with agility.

Nimble owners willing to learn and rethink business practices can dig up savings in their energy bill, advertising strategy, supplier contracts, and staffing. Here are a few ways small businesses can improve their bottom line.

The first place to look for savings is the energy bill. Replace a standard energy meter with a smart meter to instantly gain access to all kinds of insights into daily and evenly hour power usage, then adjust accordingly. A smart meter also allows a utility provider to bill more precisely, eliminating the need for estimates that are only corrected later with refunds, messing with financial plans in the meantime.

You don’t necessarily need to shell out for a fancy PR firm or major advertising campaign to attract customers. There are many in-house alternatives to amplify your business online. Develop an SEO strategy for your website, boost activity across social media platforms (including video marketing on YouTube), host giveaways, partner with other businesses through referral programs, and beef up your email marketing.

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Many suppliers offer trade credits, like a 2/10 Net 30 clause which offers a 2% discount to customers who pay invoices within 10 days of receiving an invoice, rather than the full 30 day period. If your business can afford to pay up early without negatively impacting cash flow, routinely nabbing the discount can add up to big savings. If your vendors don’t offer cost-saving options, consider renegotiating outdated contracts to bring down costs.

Don’t waste time searching for energy efficient light bulbs or appliances. Just look for the Energy Star label, a certification by the EPA that a product meets stringent efficiency requirements, including a long lifespan and features that consumers commonly demand. Energy Star devices offer energy savings, less work down the line with replacements, and all without sacrificing a thing.

Many businesses have been forced to pivot to telecommuting during the Covid-19 pandemic, but there may be a flood of employers returning to traditional in-person models in the coming years. Don’t follow them. Telecommuting is a permanent strategy for employers to significantly cut costs, if they can work through the kinks of remote management. It will undoubtedly take trial and error, likely some restructuring of teams and reassigning duties, but in the long run moving some workers off-site may save a lot of money.

No, you don’t need the shiniest, newest gadgets in your business. There are secondary markets for all types of electronics and appliances. Not only is it good for the planet to buy lightly used equipment, but it will save you a buck too.

Don’t over-manage your employees. Not only does it waste supervisors’ time, whose skills could be put to use elsewhere, but it also saps efficiency from employees, who must spend extra time talking with their bosses. According to the Harvard Business Review, “As a rule of thumb, you should be able to reduce the number of hours devoted to supervision by about 10% in each year that the department’s duties remain largely unchanged, as long as there has been little turnover.” Just be sure to reassign that freed up time for supervisors.

When it’s impossible to find any further fat to cut from the budget, consider commissioning an audit of your energy systems. An energy assessment can turn up all sorts of savings, from upgrading HVAC units, to optimizing lighting, to improving insulation.