Did you know who the biggest spender for business travel is? Well, to my surprise, the answer is small business owners. Indeed, small businesses spend more on travel than big businesses. How come?
According to a report released by Concur (in PDF,) offering integrated solutions for travel and expense management, small businesses spend 24 percent more than big businesses on travel expenses in 2012. The survey is on Concur users, on how much they spend on travel and entertainment while on the road annually.
The survey found that on average, small businesses spend $500 more per filer per quarter than big businesses. But why? How?
As reported by Small Business Trends, it seems that small business owners travel more than their bigger counterparts.
Small business survey respondents purchase 37 percent more airline tickets per quarter than the big guys. Even without air travel requirement, small businesses are still spending more on accommodations and meals.
Check out this comparison to see how small businesses fare against big businesses…
Of course, there’s a catch: Big businesses enjoy more bargaining power due the economics of scale; they get discounts, while small businesses don’t.
The study also reveals that one of the reasons big businesses spend less on travel than small businesses is the spending management strategies.
So what a small business to do to cut rising travel costs to reduce burdens on its already-limited budget?
1. Adopt the cloud!
There’s no other way: Small businesses must find something which allows them to better manage their spending. One of the must-do for a small business owner is to adopt cloud computing.
Using the affordable online collaboration tools to manage and discuss projects with clients… using cloud data storage to make your data – including reports and contracts – accessible anytime, anywhere… using online communication tools like Google Hangout and Skype… doing document revisions using Google Docs… sending fax online using HelloFax or MyFax… signing document legally using HelloSign… all available for you at an affordable rate, even free of charge.
2. Clip coupons
I clip coupons – online coupons – and save a lot on accommodations and meals. I use Groupon and the likes to find deals and quite often, I save more than 50 percent on them.
Always be on the lookout for deals related to your business travel needs; surprisingly, there are aplenty.
3. Budget your travel
It seems obvious, but not many really budget their business travel. Sure, small business owners allocate a budget for travel, but you need to get down to the details to identify possible leaks and find the available alternatives. Before you know it, you’ll see how much less you can spend for travel and entertainment without losing all the fun!
Takeaway
Indeed, small business owners need to step up in their game to work on preserving their hard-earned money. Well, you need to be smarter with your money and believe me – there are many things – for work and entertainment – you can do for less.
So, do you have any tips on how a small business owner can do business travel without burning a hole in his pocket? If so, please share with us!
Photo credit: ~Oryctes~
