As a business owner, it is crucial to continuously search for new ways to reduce costs and increase profits. Without actively seeking opportunities to improve your business’s financial situation, it is unlikely that your business will thrive. By implementing these 15 simple strategies within a year, you will be able to save thousands of dollars in net profit.

One of the most effective strategies for reducing business costs is to take advantage of the freelance workforce. A recent study predicts that 40% of the US workforce will go freelance by 2020. By starting to utilize freelance workers from the beginning, you can avoid paying overhead costs such as sick leave, training, vacations, insurance, etc. Hiring a flexible team on a per-project/task basis will significantly reduce operating costs and improve overall key performance indicators. Additionally, outsourcing certain tasks or projects to specialists abroad may cost less than hiring someone locally with the same skill set.

Another strategy is to start an internship program. If you need help onsite, such as sorting through paperwork, you can get in touch with a local college and offer to establish a mutually beneficial relationship. By providing internships, you get a free workforce, and the students gain real hands-on experience and a valuable resume credential. This can also lead to finding talented individuals to hire as part-time or full-time assistants in the future.

Using energy-efficient appliances is another effective cost-saving strategy. Utility bills can eat up a significant portion of your income, so opting for compact fluorescent light bulbs and energy-efficient appliances can help save money in the long run. Additionally, many government-sponsored rebates and green energy tax credits are available for businesses that make their operations more energy-efficient. Contacting your power company for a free energy audit can provide professional advice on how to further reduce energy consumption.

Keeping a virtual office can also help reduce costs. If most of your team works remotely and there is no need for a physical office space, why pay rent? Business meetings can be held at any venue, co-working space, or conference hall. Virtual offices offer temporary printing solutions, VoIP phones with personal voice message boxes, corporate mailing addresses, and dedicated receptionists to handle calls at a much lower cost compared to a traditional office setup.

Bartering is another strategy that can help reduce costs. By offering your professional services in exchange for services you need, you can save money and grow your business connections. B2B barter sites like U-Exchange and TradeBank make it easier to find businesses interested in bartering.

Going paperless can also lead to significant cost savings. Printing and mailing expenses can add up quickly, so opting for online payment and invoice systems can save money. Email marketing can help retain clients, eliminating the need for mailing coupons and adverts by traditional mail.

Re-examining your phone plan and ditching your landline can also save money. Checking for better cellphone plans on the market and using apps like Skype or Line for international calls can help reduce costs. Swapping your landline for VoIP or a virtual phone line can also lead to substantial savings.

Don’t be shy to ask for a discount when shopping for big-ticket items as a small business owner. Many retailers are willing to offer discounts if asked, and signing up for newsletters and using money-saving apps can also help save money.

Investing in self-education is always a wise choice. Instead of hiring expensive consultants to solve problems, spending time and effort on self-education can pay off in the long run. There are numerous educational websites available that offer free or low-cost courses and resources.

Buying used equipment and furniture can also lead to significant cost savings. Thrift shops, bargain sales, classified ads, and online auctions like eBay are excellent places to find office equipment at a fraction of the cost of buying new.

Cutting back on paid software is another way to reduce costs. Nowadays, there are free alternatives to many paid products on the market. Unless a specific software is crucial for your business, consider switching to free alternatives. Conducting regular technology and services audits can help identify paid apps and subscriptions that are not being used and can be canceled to save money.

Eliminating finance charges can save businesses thousands of dollars each year. Staying on top of bills and paying them on time can save money on high membership fees, late loan payments, and credit card processing fees. Automating financial processes through online payment systems and setting up alerts for bill due dates can help simplify bill management.

Opting for online advertising and having a strong online presence is essential in today’s digital age. Having a Facebook page, Twitter and Pinterest accounts, and a website properly optimized for mobile search are key to attracting customers. Compared to traditional marketing and advertising, online promotion allows for faster results with less cost.

By implementing these 15 strategies, you can significantly reduce business costs and increase profits. Taking advantage of the freelance workforce, starting an internship program, using energy-efficient appliances, keeping a virtual office, bartering, going paperless, re-examining phone plans, asking for discounts, investing in self-education, buying used equipment and furniture, cutting back on paid software, conducting technology and services audits, eliminating finance charges, and opting for online advertising are all simple yet effective ways to save money and thrive as a business owner.