{"id":69157,"date":"2024-07-08T11:07:42","date_gmt":"2024-07-08T09:07:42","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=69157"},"modified":"2026-01-29T14:13:06","modified_gmt":"2026-01-29T12:13:06","slug":"top-savings-tips-from-small-businesses","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/top-savings-tips-from-small-businesses\/","title":{"rendered":"Savings Month: 11 top savings tips from small businesses"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tSavings Month: 11 top savings tips from small businesses\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2024-07-08T11:07:42+02:00\">Jul 8, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Savings Month: 11 top savings tips from small businesses\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/top-savings-tips-from-small-businesses\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/masibulele\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/06\/Masibulele2-e1623830895780-350x350.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Masibulele Lunika<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n<p>If there\u2019s one thing the pandemic has taught small businesses, it\u2019s that they need to create a financial safety net if they are to become more resilient in these tough economic times.<\/p>\n\n\n\n<p>In line with National Savings Month, the South African Savings Institute (SASI) will focus on financial education throughout July. <\/p>\n\n\n\n<p>This year\u2019s theme, \u2018Saving To Secure Our Future\u2019, aims to promote awareness and healthy debate around saving.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-here-s-what-we-ll-cover\">Here&#8217;s what we&#8217;ll cover:<\/h4>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-11-top-money-saving-tips-from-south-african-small-business-owners\" data-level=\"2\">11 Top money-saving tips from South African small business owners<\/a><\/li><li><a href=\"#h-1-build-a-financial-buffer\" data-level=\"2\">1. Build a financial buffer<\/a><\/li><li><a href=\"#h-2-cut-costs-with-technology\" data-level=\"2\">2. Cut costs with technology<\/a><\/li><li><a href=\"#h-3-switch-to-cloud-computing\" data-level=\"2\">3. Switch to cloud computing<\/a><\/li><li><a href=\"#h-4-outsource-where-possible\" data-level=\"2\">4. Outsource where possible<\/a><\/li><li><a href=\"#h-5-lower-office-costs\" data-level=\"2\">5. Lower office costs<\/a><\/li><li><a href=\"#h-6-constant-budget-and-revenue-reviews\" data-level=\"2\">6. Constant budget and revenue reviews<\/a><\/li><li><a href=\"#h-7-monitor-working-capital\" data-level=\"2\">7. Monitor working capital<\/a><\/li><li><a href=\"#h-8-tax-monitoring\" data-level=\"2\">8. Tax monitoring<\/a><\/li><li><a href=\"#h-9-financial-goal-setting\" data-level=\"2\">9. Financial goal setting<\/a><\/li><li><a href=\"#h-10-hire-young-talent\" data-level=\"2\">10. Hire young talent<\/a><\/li><li><a href=\"#h-11-always-negotiate\" data-level=\"2\">11. Always negotiate<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-11-top-money-saving-tips-from-south-african-small-business-owners\">11 Top money-saving tips from South African small business owners<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-build-a-financial-buffer\">1. Build a financial buffer<\/h2>\n\n\n\n<p>Although this may not count as a cost-saving tip per se, building a buffer is the culmination of effective cost-saving strategies that can future-proof your business from unforeseeable challenges.<\/p>\n\n\n\n<p>Many small businesses have collapsed due to the lack of a savings to see them through tough times. <\/p>\n\n\n\n<p>All small business owners agree that a financial safety net is crucial to business survival.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong>Tip: <\/strong><br><br>Save at least 5% of all revenue. <br><br>This will allow you to slowly build a cushion, which is much needed in these times.<\/p><\/blockquote><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-cut-costs-with-technology\">2. Cut costs with technology<\/h2>\n\n\n\n<p>A simple piece of advice but every small business owner we spoke to highly recommends using technology to automate and streamline tasks and processes, which naturally results in cost savings.<\/p>\n\n\n\n<p>According to Kaveer Beharee, founder and CEO of <a href=\"https:\/\/ubiquity.ai\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ubiquity AI<\/a>, the biggest savings for his business have come from technology and continuous innovation.<\/p>\n\n\n\n<p>\u201cWe\u2019re pretty much in a golden age of innovation, so keep your eyes peeled for new solutions to costly expenses. For example, I recently bought a metal business card from a provider called V1CE that uses NFT technology. Basically, you tap your card on anyone\u2019s smartphone, which immediately uploads your contact details. You\u2019ll never have to print another business card again.\u201d<\/p>\n\n\n\n<p>Technology solutions may help with everything from adopting new forms of marketing to streamlining HR solutions using digital platforms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-switch-to-cloud-computing\">3. Switch to cloud computing<\/h2>\n\n\n\n<p>This is a common and effective cost-cutting route for most small businesses looking for technology solutions.<\/p>\n\n\n\n<p>Cloud computing can help to simplify complex transactions and processes. <\/p>\n\n\n\n<p>It has the potential to help businesses increase sales orders, while efficiently managing the related increase in quotes, invoices, and returns. <\/p>\n\n\n\n<p>Small business owners also recommend cloud services to host data and to avoid the cost of expensive hardware.<\/p>\n\n\n\n<p>Compared to traditional bookkeeping methods, cloud accounting helps businesses to significantly cut down on accounting and admin fees, as well as anytime mobile access, cost and time-effectiveness, and watertight security.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Sage 300cloud<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Designed for growth, Sage 300cloud gives you\u00a0a complete view of your business &#8211; anytime, anywhere.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-za\/products\/sage-300-cloud\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-595\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Get started<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-612387794-1064x810.jpg\" class=\"single-cta__image\" alt=\"Businesswoman using tablet\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-612387794-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-outsource-where-possible\">4. Outsource where possible<\/h2>\n\n\n\n<p>Most small business owners agree that outsourcing is one of the best ways to save money.<\/p>\n\n\n\n<p>Keep your full-time staff complement to a minimum and get independent contractors to do the work that your staff cannot, recommends Forbes 30 Under 30 list-maker and co-founder of WealthSpaces, Zareef Minty. \u201cTry to outsource as much as you can; it will lower your employee costs, since insurance, office space, and salaries will decrease.\u201d<\/p>\n\n\n\n<p>Small businesses tend to grossly underestimate the vast discounts generated by economies of scale offered by specialised companies, says Nigel Bhebhe, co-founder and CEO of diesel and petroleum distributor, Global Legacy Distributors. \u201cInstead of buying raw materials to make T-shirts, you can buy them for a steal from huge specialised companies and just add your branding, for example.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-lower-office-costs\">5. Lower office costs<\/h2>\n\n\n\n<p>Beharee believes that start-ups generally incur a lot of expenses on brand collateral, expensive office rental, stationery, etc, to impress potential clients. <\/p>\n\n\n\n<p>\u201cThis has forced businesses to carefully rethink their expenses. It\u2019s perfectly acceptable to operate from home and collaborate using online tools,\u201d he says.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-constant-budget-and-revenue-reviews\">6. Constant budget and revenue reviews<\/h2>\n\n\n\n<p>\u201cBusinesses should continuously review their expenditure to try to find efficient ways to do things. If you can save on costs, you can free up more cash to invest or save.\u201d<\/p>\n\n\n\n<p>This is according to Wandile Tshabe, co-founding director at <a href=\"https:\/\/www.nolandfarming.co.za\/\" target=\"_blank\" rel=\"noreferrer noopener\">No. Land Farming<\/a>, who says businesses should treat their income\/revenue like an individual would treat their salary.<\/p>\n\n\n\n<p>\u201cThe idea here is to set aside a portion that goes to investments (saving for the future), a portion that goes to savings (for a rainy day), a portion that goes to operational expenses (salaries, etc.), and a portion to enjoy (like staff bonuses).&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-7-monitor-working-capital\">7. Monitor working capital<\/h2>\n\n\n\n<p>Small businesses often struggle to maintain working capital.<\/p>\n\n\n\n<p>Businesses should be strict when it comes to how customers pay. When you\u2019re a small business, try as much as you can to avoid giving extended lines of credit and try to shorten the cycle of debt.<\/p>\n\n\n\n<p>Businesses need to make sure that their customers pay quickly, send invoices on time, and avoid credit as much as possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-8-tax-monitoring\">8. Tax monitoring<\/h2>\n\n\n\n<p>Small businesses need to be more rigorous when it comes to tax.<\/p>\n\n\n\n<p>\u201cBe on top of it. Businesses need to be mindful of expected provisional payments and ensure that they pay tax on time. If the business has complex structures, it would be advisable to get an expert to help them calculate their tax and ensure that their affairs are structured in the most tax-efficient manner to benefit from any tax savings,\u201d Tshabe says.<\/p>\n\n\n\n<p>One of the most overlooked ways to generate extra savings for a business is to review and amend taxes from the last three financial years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-9-financial-goal-setting\">9. Financial goal setting<\/h2>\n\n\n\n<p>All small business owners agree that having a financial goal is an effective way to cut costs. They consider this a great way to plan for the future while creating a financial buffer.<\/p>\n\n\n\n<p>Lonwabo Marele, founder and CEO at digital wealth magazine <a href=\"https:\/\/successfuljournals.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Successful Journals<\/a>, says having a financial goal is important especially when you want to pitch to investors. \u201cThe first thing [investors] will ask in your business plan will be around the financial sheet. No matter how small or big you are, it is important to have your financial goal set to manage risk, avoid silly mistakes, and to gear you towards profits.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-10-hire-young-talent\">10. Hire young talent<\/h2>\n\n\n\n<p>Almost one in every two young people did not have a job in 2023, with the official youth unemployment rate at a record 49%. <\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-za\/blog\/youth-employment-and-inclusion-5-ways-to-get-it-right\/\" target=\"_blank\" rel=\"noreferrer noopener\">Hiring young, motivated people<\/a> is a great cost-saving and resilience-building route as it also helps talented youth to gain experience.<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/youth.dgmt.co.za\/why-your-business-should-hire-young-people\/\" target=\"_blank\" rel=\"noreferrer noopener\">one study<\/a>, employers agree that young people are willing to learn (47%), contribute fresh ideas and new approaches (43%) and bring motivation, energy, and optimism to the workforce (42%). <\/p>\n\n\n\n<p>Qualified youth also bring up-to-date skills and education into the organisation.<\/p>\n\n\n\n<p>Small businesses are advised to hire smart, inexperienced people. <\/p>\n\n\n\n<p>According to American Express, experience isn&#8217;t everything, and it costs more. <\/p>\n\n\n\n<p>Next time you put up a job ad, eliminate the line that says, &#8220;Must have X years\u2019 experience&#8221; and replace it with &#8220;Graduates welcome to apply&#8221;. Interns are generally considered a good place to start.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-11-always-negotiate\">11. Always negotiate<\/h2>\n\n\n\n<p>Last but not least, negotiating with your vendors is crucial during tough economic times.<\/p>\n\n\n\n<p>\u201cWhen the economy is struggling, entire business ecosystems are affected\u2014not just small businesses. <\/p>\n\n\n\n<p>Vendors want to ensure continued cash flow, so they are often willing to negotiate lower prices, interest rates, and supplier terms rather than losing longstanding customers,\u201d says Tshabe.<\/p>\n\n\n\n<p>Have your own small business savings tips? Share them below.<\/p>\n\n\n\n<p><em>Editor&#8217;s note: This article was originally published in July 2021 and has been updated for relevance.<\/em><\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover top money-saving tips from South African small business owners.<\/p>\n","protected":false},"author":1266,"featured_media":68324,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[33,30,25],"tags":[294,166,318],"business_type":[2],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[73,85,86,81],"coauthors":[444],"class_list":["post-69157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-planning","category-daily-money","category-money-matters","tag-accountants","tag-business-management","tag-cloud","business_type-small-business"],"sage_meta":{"region":"en-za","author_name":"Masibulele Lunika","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-40.jpg","imagine_tags":{"73":"Money Matters","85":"Small business","86":"Start up business","81":"Technology and Innovation"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1266"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=69157"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69157\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/68324"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=69157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=69157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=69157"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=69157"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=69157"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=69157"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=69157"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=69157"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=69157"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=69157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}