It doesn’t necessarily have to take much effort or time to reduce the operating costs of your small business or even create processes which save money over time. In a lot of cases, it’s just basically making wiser choices about how you spend your small business resources.
Keep reading to learn 10 ways that you can cut down on your business costs while improving the bottom line.
1) Put Technology To Use:
Technology can let you save money while advancing your business in many ways that didn’t even exist five years ago. From online payment services and open-source software to teleconferencing services and remotely operated desktop applications, there are quite a few ways in which you can reduce the costs of doing business by using technology.
2) Drop The Landline:
Believe it or not, traditional telephone lines are actually unnecessary to spend money one, and they’re even expensive. Virtual phone lines, wireless plans, and VoIP all prove valuable in keeping lines of communication open while reducing business costs.
3) Get Paperless:
Mailing supplies, postage, ink, and paper may not look like huge costs when you look at them, but they add up over time. Only print when it’s essential, and transition everything you can to a digital system for invoicing and bill payments. Filing your essential documents and paperwork on a hard drive rather than a file cabinet clears clutter and reduces common and recurring expenses.
4) Market Your Company On The Internet:
If the Internet marketing parade is not something you’re currently a part of, then you’re avoiding the staggering potential of marketing that is low in costs, high in results, and quick to prove fruitful. Get going with a business blog before factoring in social media marketing and other forms of online advertising to tap into the power of this medium that won’t cost you much.
5) Minimize Credit Card Debt:
You might be able to cut down on immediate business costs when you put them on a corporate credit card, but the potential fees and interest rates make this ineffective in the long run. You’re not going to cut down business costs quickly by cutting down on credit card debt, but you’ll slowly improve the financial health of your business over time.
6) Make A Business Budget, And Then Stick To It:
Budgets work alongside reducing business costs, and that’s because it’s quite simply impossible to do the right things financially without some picture of where your money comes in and then goes at, as well as at what volumes. When your business budget is thorough and realistic, it winds up being a robust tool for daily business management. If possible, pay for everything electronically so the data on all transactions can be exported digitally and software can immediately show you where all your comes and goes. Doing that with all records for the previous year will set up a budget based on reality and from there you can find areas of immediate improvement to work on.
7) Look Into Other Places Of Business:
Having a physical or brick and mortar place to do business carries immense and unavoidable expenses in many cases. Is there anything you can change, though? Could you save on rent and utilities by downsizing? Could you explore a potential coworking arrangement? Could employees telecommute from home to save office space? Could you save on broadband if you switch broadband provider.
8) Pare Back The Software:
Just how many applications does your business use daily? You likely have a few on your computer that get used rarely, if at all. Only buy what you need and skip other apps or software and their needless upgrade fees. Look into open-source alternatives or freeware as cheaper substitutes to name-brand titles that do the same thing.
9) Use Refurbished Hardware:
When you buy equipment brand new at retail price points, you’re spending a lot. Cut down on expenses by getting refurbished hardware and furniture. It’s often just as good as new merchandise but at a fraction of the price.
10) Consider Bartering:
Bartering is the exchange of goods and services for other goods and services without any actual exchange of cash. Successful bartering agreements cut down on business costs by filling immediate needs without funds being spent.
These are 10 ways you can cut down on your business costs, letting you make other choices so you can save your company money. If you can adopt the mindset of cutting business costs, then a lot of wise choices become habit and wind up impacting everything you do.