SMALL BUSINESS TIP #17: 8 Cost Cutting Tips for Solopreneurs

Solopreneurs know that time management is key to making their businesses successful. Sometimes, budget management gets left on the back burner as they juggle other tasks.

Of course, you don’t have to let saving money take over your life, like those on “Extreme Couponing playing on Fubo” do, but you should definitely set aside some time to create and constantly edit your business’ budget.

So, let’s get to saving you some money!

Cost Cutting Tips for Solopreneurs

❶ Shop Around for Freelancers

For solopreneurs, outsourcing certain tasks to outside resources is one of the best time savers. However, one of the most impactful cost cutting tips for solopreneurs is to perform as many tasks as you can yourself before looking to hire a freelancer, either for a short or long period of time.

Typical tasks that can be delegated to freelancers include blogging, virtual assistance, and accounting. Freelancers do not require a fixed monthly salary and you can always stop assigning work to them if you think you can do it on your own.

When you decide it’s definitely best to delegate, do your research and interview the top three or more freelancers that you would like to work with before settling on one.

Test the waters to see if you can negotiate costs for labor upfront and always make sure there aren’t any hidden fees for freelancer or consultant services. For example, many freelance platforms (like Upwork), charge both the freelancer and the solopreneur to user their service.

❷ Utilize Automation Whenever Possible

The more you automate, the more time you free up to generate income.

For social media management, tools such as Hootsuite and Canva can help automate posting and responses.

One of the reasons we are madly in love with the IHUBApp progressive web app is its high level of automation. No more paying for a third-party email marketing platform or spending time or money creating a newsletter—email and e-newsletter delivery are totally automated.

You can also use automation for SMS or WhatsApp messaging if your customers and clients are comfortable providing you with a phone number, often in exchange for a discount for your products and services.

RELATED | 7 Ways the IHUBApp PWA Can Help You Grow Your Business

❸ Cut Personal Expenses

If you are struggling to find enough funds to put into your business, consider cutting some of your personal expenses to help get your business off the ground.

For example, if you pay for a gym membership, consider canceling it and saving money by exercising at home.

In general, any expenses that you pay monthly, such as memberships and entertainment bills, should be evaluated to see if you really need them or not.

❹ Remember that Everything Is Negotiable

Large business expenses are often negotiable, but it’s only negotiable if you ask the buyer.

For example, if you hire an interior designer to decorate your office space, ask if you may receive a discount for services if you refer other small business owners to that designer.

If you buy items in bulk from a wholesaler, you may also be able to negotiate lower prices, especially if you buy from the wholesaler quite regularly.

One of the cost cutting tips for solopreneurs that we offer here at Scribaceous is offering our clients the opportunity to trade services. Bartering, like it was done in the “good ‘ol days” is a win-win for both parties!

❺ Save on Office Utilities & Gas

Whether you work from home or go to an office, take time to evaluate how much electricity you use while working.

Often, you can cut the power costs of your workspace by turning off unnecessary lights and machines, like printers, fans, and humidifiers, while they are not in use. You can also invest in energy-efficient lightbulbs and use the air conditioner or heater at optimum settings.

Additionally, if working from home is feasible for your business, choose to work through your home office. It saves money on transportation and food since you will not need to eat from expensive outdoor restaurants.

If you meet frequently with clients, you can request them to do some meetings virtually to eliminate the need for transportation and reduce your gas expenditure.

❻ Consider Buying Used or Overstock Equipment

Used items are considerably cheaper to purchase than new ones, and you get nearly all of your office equipment used from auctions and online sites.

Consider getting used desks, printers, storage bins, computers, and even vehicles to cut costs.

And, ALWAYS check the Amazon Outlet first before buying new equipment! They may offer what you’re looking for at a fraction of the price.

For those who ship a lot of items from their business, it also pays to save and reuse shipping boxes and materials, especially bubble packaging.

RELATED | Advantages of Using an IHUBApp vs a Traditional Website

❼ Maximize Tax Deductions

As a small business owner, you want to maximize those tax write offs to reduce your taxable income as much as possible.

Some common items that solopreneurs deduct from their taxes include office supplies, cell phones and other devices, travel expenses, software, and gifts for clients.

While you should always consult with a tax expert before submitting your taxes, know that there is probably more than you think to write off when you evaluate how much money you put into your business each year.

❽ Use a Business-Focused Credit Card

Many credit cards exist for small businesses to use when they want to get cash back on the everyday purchases they make. These credit cards also sometimes provide free resources to small business owners.

They may even offer business loans with low-interest rates for those who have a good credit score.

Cost cutting is an essential skill that every solopreneur needs to learn in order to make their business more successful! Do you have any cost cutting tips for solopreneurs to add to this list? Leave them in a comment below and I’ll add them to the post!