How To Save Your Business Money & Boost Your Bottom Line
As every successful business owner will tell you, running a company isn’t just about selling things.
It’s how much each of your sales costs that can make the difference between success and failure. With this in mind, we thought we would go through some simple ways that you can reduce your costs. In doing so, you can improve your cost of sale figures, and boost your bottom line. Read on to find out more.
Manage your time better
Most people understand that time is money, but time management is a huge issue in the workplace. There are plenty of businesses out there that simply aren’t productive enough. And, nobody became successful through wasting time.
Look closely at your business, and find out when your most productive hours are. Ensure that all the most important tasks are completed during this period, and leave simple things for later when your less productive..
You should also think about motivating your staff to work better for you. Give everyone achievable goals and the chance to shine – you will find productivity levels shoot through the roof.
Choose a better premises
Most people love the idea of running their business in a beautiful office, complete with tropical plants, and vintage bikes hung on the wall. But is it worth it? Your rent and rates are an enormous part of your costs of sale, so think about how you can trim down.
Think about moving to a cheaper location, or find a smaller space that is more efficient for the size of your team. Forget about your ego – if your offices are costing you a big percentage of your profits, there is nothing to be especially proud of.
Cut back on communications costs
Business phone lines cost a considerable amount of money. But, you can save on these expenses in a number of ways. Find a service that can help you track every call that is made from your premises, which you can use to stop employees from wasting your money.
You don’t even need a phone these days – it could be more cost-effective for you to use a service like Skype or Grasshopper instead.
Find alternatives to hiring employees
Hiring staff is one of the biggest costs of running a business. You have to pay them a wage, contributions, and plenty of other benefits – as well as the costs for training them and paying them for holidays. Instead, try outsourcing to a business service.
For example, it’s wise for any company to invest in a human resources presence to keep you protected from any rules and regulations. However, if you are a small firm, it might only be something you need every now and again.
So, instead of hiring full-time staff, look into finding a company that specialises in HR for small businesses. They will be there when you need them, and you will still have that robust protection.
Look after your inventory
Your stock levels cost you money; it’s as simple as that. The leaner you can be, the better your profit margins will be. Try to run as tight a ship as possible and promote efficiency to your workforce.
Don’t go too far, though. You have to order enough to provide a service to your customers, and there’s a fine line between great stock control and a disaster.
Spend on the right marketing
There are plenty of marketing services out there that promise you the world. Give them some money and they will get you on page one of Google, transform your company into a global success, and make you a millionaire.
Now, while some of them might well be able to do that, it doesn’t make them a good fit for your business. You have to think carefully about where you put your money and invest only in the things that work.
For example, if you have been throwing money at a social media campaign, and it still isn’t working, it isn’t going to work. Flogging a dead horse is a relevant phrase here – just walk away and concentrate on what is working.
Employ the right staff
Be careful about who you hire, if you have to. Every member of staff you have on the books is a money drain, and it’s important for them to be as efficient as possible in their role. For example, if you have someone who is great at selling, make sure that’s what they are doing for you – every hour that they work.
You don’t want them wasting your time – or theirs – by filling out pointless forms. Instead, hire support staff who can do it for them for a cheaper wage. That little extra you spend will improve the salesperson’s performance – and that means money in the bank for you.
Learn to delegate
As the head of your business, you have to take a top-level view of the company. If you get sucked into doing jobs for people or micro-managing them, it isn’t an efficient use of your time. So, learn to delegate.
Let someone else deal with all that stuff and get a daily report from them. They will enjoy the extra responsibility while you will have more time to do more valuable things for your business.
Don’t buy new equipment
Buying new equipment for your business might look all nice, shiny, and professional. But is it really giving you value? High spec computers and technology are expensive. But even those businesses that rely on them – such as graphic design – can save by going second-hand.
Stick to the basics and find better deals. You can cut back your equipment costs by anything up to 60% of the cost, and as long as you maintain them well, they will do a great job for you.
Check your insurance policy regularly
A lot of businesses choose an insurance package when they start out and don’t bother thinking about it again. Those people are making a mistake. Most insurance companies will entice you with a great introductory deal, but after six months or a year, your premiums will rocket.
Always be on the search for a better deal – and use this premise for everything in your business, as well as insurance.
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