Running your own business is a big enough headache without having to worry about your expenses. Managing deadlines, working with employees, finalizing products, and running day to day operations are difficult enough. Add in the process of budgeting and dealing with expenditures and you can be over your head. Luckily, help is at hand with this guide on ways to cut business costs.
Cutting business costs can do a lot more for your business then you think. Of course you can increase your profits, but there are other things as well. Also, cutting costs and reducing expenses is a long term goal. You have to think how your decisions and the direction you take the business will affect business costs in the long run.
Outsource Essential Services
Outsourcing your essential services is a fantastic way of cutting costs. For example, it makes sense for someone else to handle your business accounts and payroll. This means that you don’t have to get involved with this side of the business. Instead, you can get on with doing the things that make your company money.
It may be that your business is not yet big enough to warrant a full-time accountant and you don’t want the expense of having to pay another member of staff. Outsourcing your accounting needs means that you will only have to pay someone for the work they carry out rather than paying for a set number of hours. This can save you a lot.
If you are an entrepreneur and start you own specialized company, odds are you want to invest in hiring employees with a similar mind set. These may be motivated employees with a similar background as yourself. If you are running small a manufacturing business, one of your machine mechanics probably won’t have bookkeeping skills. This is where outsourcing accounting, payroll, bill pay, and tax preparation duties is one of the ways to cut business costs.
Get Smart with Your Marketing
Marketing is likely to be a big part of your costs. This is especially true if you are a new business and you want to get your company noticed. You can cut corners by marketing through social media, and this doesn’t have to cost you a lot.
If you own a local business there are a ton of social media pages that will allow you to advertise your products or services for free. Remember, it doesn’t cost a thing to create a Facebook or Twitter account. Using social media is a terrific way to reach people in your local community.
Another marketing source that works well is direct marketing. You can cut costs here by paying a flat fee for all your direct mailing needs rather than having to pay for each step of the marketing process individually. As Lob’s article explains, this can also save you a lot of hassle as the paper and ink shortage currently makes this process even harder. Lob provides some useful advice on how to cut your direct mailing costs. They offer a streamlined service that could make you huge savings and help you to improve your sales revenue.
Marketing techniques and strategies evolve quickly. Trends in marketing change all the time. One way to stay smart with your marketing is to keep up with industry trends. For instance, both digital marketing as well as influencer marketing and relatively new trends that are making their mark on small businesses.
This has been around for decades, but the idea has really taken off over the last few years. More and more companies are opting for collaborative spacing rather than renting or buying a whole office for themselves. This has become popular as companies realize that they don’t need as much space as they used to. For example, perhaps a lot more of your employees are working from home. Maybe you have streamlined your business and don’t need the space anymore.
Collaborative spacing means that you only have to pay for the space you are going to use. It may be that you need some permanent desks and some flexible desks for those times when employees need or want to work from the office. You may also find it useful if you can reserve meeting rooms when you need to rather than having the space available all the time and not using it.
Collaborative spacing can save you a lot of money because you are not paying for space that is going to waste. It also means that you can cut costs as your utility bills are often included in the rental price. This means that you don’t have to pay for things such as lighting and heating separately. If you currently own a large office building and are not using it at full capacity, think about renting or leasing out some of your unused space. This can be a great way to earn some income on the side.
Buy Refurbished Equipment
Another one of the ways to cut business costs is by purchasing refurbished or lightly used equipment. If you are looking for office furniture, then buying refurbished equipment can save you a lot of money compared to buying it new.
This is a fantastic way of stocking your office with equipment such as ergonomic chairs, desks, and even computers. These can look as good as new ones and they work just as well. However, you can save yourself a huge amount. Your clients won’t notice the difference, but your budget will.
With the price of gas constantly rising, it makes a lot of sense to cut costs in this area. Gone are the days when you had to go out to have meetings with clients, suppliers, or meet up with colleagues from around the country. During the coronavirus pandemic, the use of video conferencing rose dramatically.
If you are not already doing this, then perhaps it is time to jump on the bandwagon as conducting virtual meetings will save you a small fortune in gas and wear and tear on your car. It will also save you traveling time which means that you can spend more time concentrating on other areas of the business and creating more profit.
If the pandemic taught us one thing, is that business can and will continue. Gone are the days when you need to be in the office or have a meeting in person. Assuming you cut your traveling down during the pandemic, think about how much money it saved you. Yes, you may not be getting as many free airline rewards. However, you are probably saving thousands of dollars by opting for a virtual meeting over an in person one.
Best Ways to Cut Business Costs – Summary
There are many ways to cut business costs. The ones we listed here are just a few. If you use some of these ways to cut business costs, you will be amazed by how much money you can save your company. You can use the cost-cutting to boost the profits of your business or grow your company at a faster rate.
Remember, every small thing counts when you are trying to reduce business expenses.