10 Costs Cutting Ideas To Reduce Your Small Business Expenses
Businesses may be built on passion and determination, but there’s no escaping the fact that they run on money.
Whether you own a service provider, brick and mortar store, or ecommerce company, you will have your own set of expenses to deal with each week, month, and year.
Unfortunately, there’s no way of eliminating these costs completely, but that doesn’t mean that you can’t significantly reduce them.
With that in mind, here are ten cost-cutting ideas to save money and reduce your small business expenses.
Buy Previously Owned Equipment
Every office requires attractive and functional equipment, but nowhere in your company bylaws does it say that your computers, phones, and printers necessarily need to be brand new. A lot of the time, you can find these things on Craigslist, eBay, and used goods stores for much cheaper, without having to give up the great quality you require. Depending on the needs of your company, you could also purchase, desks, chairs, vehicles, and cutlery from these places too.
Try Sharing Office Space
Regardless of whether you’re planning to buy or rent office space, the costs involved are always going to be quite large. For this reason, you should carefully consider whether or not a physical office is actually necessary. Thankfully, if you have found that it is, there are still ways to save some money. Sharing your space with another company is one of the most popular, as it means you’ll be able to split your office expenses in half.
Improve Your Energy Efficiency
Running an eco-friendly business is a great way to stand out from your competitors and appeal to new customers, while also doing your bit for the environment. Since energy is one of the largest costs associated with an office, cutting down your use can also help you to save a lot of money. Luckily, there are lots of ways to do this, like using energy saving light bulbs and turning equipment off when it’s not in use. You could also invest in double glazing to prevent heat loss.
Make Use Of Telecommunication
Another great way to keep energy bills low is to embrace the use of telecommunication. In the technologically savvy world we live in, it’s no longer necessary to be at the office in order to work. For this reason, you may want to consider allowing some of your employees to work from home. This benefits both of you, as it means that they won’t have to waste time or money commuting to work, and you can the save cash you would have spent on heating and lighting.
Modernise Your Marketing Strategy
Every business needs marketing to reach new customers and make sales. Unfortunately, far too many choose to ditch marketing altogether when times get financially tough. Thankfully, there’s no need to eliminate marketing efforts that actually work, but it might be worthwhile to look at a few cheaper or free alternatives. Social media, for example, can be used to reach a large audience, often without spending a penny. You should also consider SEO and content marketing.
Spend Time Shopping Around
From pens and paper, to coffee, shipping costs, and more, there are plenty of things your company has to pay for on a regular basis. Rather than settling for the first price you find, you should spend some time shopping around for the best deals. Price comparison sites, like Parcel2Go, can make this process a lot quicker. You can also try to negotiate with your regular vendor to see if you can haggle a discount. It won’t always work, but there’s no harm in trying.
Make Payments On Time
As dull and complicated as it can get at times, you need to stay on top of your accounting and ensure that all of your bills are paid on time. If you fail to do this, then you could face late payment fees, which would mean your company owing even more money. Unfortunately, there may be months where you’re short on cash, in which case you should call the company and explain your situation. If you’re open and honest, they may let you off just this once.
Hire Freelancers And Interns
As a business, the last thing you want to do is hire employees before you’re ready. This is a large and expensive problem that has been known to completely destroy companies. That being said, you shouldn’t have to handle such a huge workload on your own, which is why freelancers are so handy. This would save you time and money hiring permanent employees, but you still receive the top quality work you need. Hiring the odd intern now and then can also be beneficial.
Boost Your Employee Retention
Freelancers and interns can prove to be incredibly useful, but there some responsibilities that are better left to permanent members of staff. Unfortunately, the hiring process can be incredibly costly, which is why you need to ensure that the team you hire stick with you for as long as possible. This means keeping your employees happy and showing that you care. You can do this by offering perks and benefits, rewarding them for their hard work, and being there to listen.
Invest In Proper Insurance
In the early days of your company, you probably wouldn’t need much insurance cover, but as you start to grow, your need for certain policies, like workers’ compensation and cyber insurance, will grow. While these policies are far from cheap, they will cost a lot less than a lawsuit, which is why you need to ensure that you have the right protections. That being said, you can save some money by shopping around and seeking professional legal advice.
Every business out there is different, with its own expenses and costs to deal with, and while there’s no way to eliminate these costs completely, there are lots of ways to save some cash. Hopefully, with the advice above, you’ll be able to do just that.
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