‘The more you save you less you have to earn’ is an old, but true, business maxim. Any savings you can make soon add up.
Here are ten ways to cut down on the costs for your business:
1. Mailing lists
Go through your mailing lists and purge them of inaccurate records. It’s money down the drain sending mail to people who are no longer there, quite apart from the negative impression it can create if you’re sending incorrectly addressed mail.
2. Bulk buy supplies
As your business grows, it makes sense to buy supplies such as office and janitorial supplies in bulk. Not only can you get a much better deal on the cost per individual unit but you can make large orders to prevent the need for frequent purchases and unnecessary paperwork.
3. Cloud and virtual computing
The advent of cloud computing has made a big difference to growing businesses. You can take advantage of extra storage capacity and bespoke server services in the form of virtual private servers (VPS) without the larger cost of investing in hardware-based solutions.
Ask your Internet Service Provider (ISP) about this and check this article for more information.
Rather than pay full-time staff for tasks that may only be required occasionally, why not outsource? All kinds of business services are available from independent contractors and freelancers. This can be a way of tapping into expert knowledge and services without the need to pay to have them ‘on the books’ on a full time basis.
5. Learning yourself
In the reverse of the above, you or a staff member could learn a particular skill from an expert and then do it yourself in the future if it’s something you will need regularly. For example, maybe consider hiring a PR expert for a day or attend a course on how to write press releases so you can do it yourself. Adding new strings to the bows of your employees – or indeed your own – will make for a more flexible, efficient workforce. Try to encourage staff to train up in tasks that they either enjoy or are strong at to make the most of the people you have at your disposal.
6. Utilities and contractors price checking
‘It pays to shop around’ is another very true business maxim as suppliers of power, telephone and insurance can often take advantage of existing customers when it comes to renewal rates.
Check prices of the following:
Bulk suppliers – janitorial and office suppliers
Power and energy suppliers
Insurance companies – check ALL those insurance renewal quotes
Telephone, cellphone contracts and Internet connection (ISP)
Tempting as it may be to always use the same contractors such as electricians, computer experts and maybe window cleaners, it’s not a bad idea to get alternative quotes periodically.
7. Expert professional fees
It’s as simple as asking your accountant, insurance agent and attorney how to save on costs. They’ll often give you various suggestions as to how to save on their fees.
8. Time your payments
Do you get a discount from your suppliers for early payment? If so, pay early and save. Research deals that can give you discounts for small changes – this really can be ‘money for nothing’.
9. Pick up supplies yourself
If you have employees on the road, maybe they can pick up supplies from far-flung suppliers such as office and janitorial suppliers? It could save you costs on shipping and means utilising an empty vehicle.
10. Working from home deductions
If you’re a home-based business, don’t forget the deductions you can make using your home as an office. Check with your tax advisor or accountant and the IRS website for more information.
The above are some of the ways to save business costs. There are many more, but the trick is to get into a money-saving mindset. Embrace every task by looking to cut as much of the cost involved as possible, without impinging on quality, and you’ll be in the right frame of mind to make your business operation as lean and efficient as possible.