We’ve talked a lot about getting an affordable website or reducing your monthly website costs, but how about the rest of your business? While it’s important to focus on building your revenue, some businesses miss out on some easy cost savings. Reckless spending or just paying more than you have to (see our post about domain fees) can definitely hurt the profitability of a business, or even cause it to stop trading altogether.
Here are five tips on making your business more affordable.
1 – Do you need to be GST registered?
It seems to be one of the first things new businesses feel is compulsory. It isn’t. The IRD only require businesses with a turnover more than $60,000 to be GST registered. Do the numbers.
You might find it’s cheaper for your business not to be GST registered, you can always convert later when you’re more established and your turnover hits the threshold. Save the cost of accounting software (see tip #2 below), accountants and time preparing GST returns by not being GST registered unless you need to be (or for your particular business it’s an advantage financially).
2 – Do you need paid business software?
The cost of subscription-based software can be a silent killer to a business’ profitability – seems cheap enough but added up over time it adds up to a lot. Not to mention the cost of training yourself to use it, and then operating the program to do your admin.
Depending on your business, you might not even need it, or might find there are plenty of free alternatives that can get you by, even using something like Google Workspace, until your business becomes more established.
In some cases, your business may need specialised paid software but don’t just blindly buy software applications without knowing both that you need it, and that it will pay its way in time savings and compliance benefits.
3 – Use paid advertising carefully
Advertising is important to help your business grow but quite often businesses don’t get a good return on their ad spend. Common mistakes include:
- Not having a thoroughly tested sales journey
- Not tracking conversions
- Not having a clear or cohesive message
- Not actively monitoring ad spend
The message is make sure you have everything in place and well tested before doing any paid ad spend. Another idea is to explore free ways to promote your business.
4 – Embrace Remote and Flexible Work Options
The pandemic pushed many businesses to adapt to remote work, and the trend is here to stay. Offering remote or flexible work options isn’t just attractive for talent; it’s also a great way to reduce office costs. You’ll save on rent, electricity, and daily office expenses while giving your team a better work-life balance. If a fully remote setup isn’t feasible, consider a hybrid model with shared workspaces or reduced office hours.
Tip: Many co-working spaces offer flexible plans, which could reduce overhead costs compared to traditional leases.
5 – Go Green to Cut Utility Costs
Implementing sustainable practices isn’t just good for the planet; it’s smart business too. Simple steps such as switching to energy-efficient light bulbs, setting up a recycling programme, and encouraging digital communications (reducing paper waste) can save money over time. Plus, energy-efficient practices can help you qualify for sustainability grants available in New Zealand.
Tip: Investigate local government grants for small businesses adopting sustainable practices. This can offset initial costs while lowering long-term utility expenses.
6 – Outsource Non-Core Activities
Many small and medium-sized businesses try to manage everything in-house, which can lead to inefficiencies. Instead, focus on core activities and outsource tasks that don’t directly add value to your business’s main goals. For example, consider outsourcing IT management, payroll, digital marketing, or even content creation. Specialised service providers can often do these tasks more efficiently and affordably than hiring full-time staff.
Tip: Partner with agencies or freelancers on a project-by-project basis instead of committing to long-term contracts to maintain flexibility and control over costs.
7 – Embrace Cloud-Based Tools and Software
Managing business operations using cloud-based software not only increases productivity but also reduces IT infrastructure costs. Cloud-based tools often operate on a subscription model, meaning you can choose plans that fit your needs without a large initial outlay. From accounting software like Xero (a Kiwi favourite) to project management tools like Asana, using cloud solutions can streamline processes, improve collaboration, and save on equipment costs.
Tip: Many cloud services offer discounts for annual subscriptions. Also, look into bundled packages or integrated tools that cover multiple functions, so you can avoid paying for several single-purpose apps.
8 – Leverage Community and Local Networks
New Zealand has a unique culture of community and collaboration, so take advantage of local networks. Collaborating with other local businesses can lead to shared resources, co-marketing opportunities, or even shared spaces. Join local chambers of commerce, attend networking events, and be active in online communities. These connections can lead to resource-sharing arrangements, discounts, or other cost-effective solutions that help businesses grow affordably.
Tip: Networking isn’t just about sales—focus on building relationships that can provide you with trusted vendors, advice, and potential business allies in the local community.
A More Affordable Business makes you more Resilient
By making smart choices about how and where you spend, you can build a leaner, more resilient business. Adopting remote work, cutting unnecessary costs, leveraging affordable tech, and building strong local networks can give you the edge needed to keep your New Zealand business thriving without overspending. Try implementing one or more of these tips and watch your bottom line improve as you run a more sustainable and cost-effective operation.
If you want to look at some ways you can reduce your spend on your business website to make it more affordable (as well as digital marketing and email services), why not try out our savings calculator?