Whether you run a small business out of your garage or a big enterprise, expenses are something that every business owner is looking to reduce. However, cost-cutting is quite challenging – it doesn’t just require creative solutions to business problems, but you also need to be practical. Nonetheless, it is essential to be cost-efficient. If you’re not careful, towering fixed and variable expenses can quickly tank your business, leaving you with nothing at all. With that said, here are a few tips you can use to reduce business expenses and save money!
Buy used furniture and equipment
Setting up an office can be quite an expense, especially for start-ups with limited resources. This is why you need to consider cheaper alternatives. Didn’t shop at bargain sales and thrift shops? You’re missing out on a lot. While some people may find it embarrassing, upscaling used furniture and equipment is trending, and it’s an excellent way to avoid buying expensive office furniture. Surprisingly, many businesses today aren’t decorating their offices with corporate designer goods. Instead, they’re opting for vintage stuff that doesn’t cost a lot. By purchasing used office equipment like printers, faxes, and computers, businesses are saving a lot. So what’s holding you back?
If you don’t have deep pockets, hiring additional resources to fill up essential job roles can become tricky. Hence, it’s better to multitask and perform more than one role in your business instead of increasing the headcount and incurring more expenses in employee salaries. You’ll be surprised at the amount you can save. Instead, consider using some of those savings to upskill yourself – you’ll need to anyway. The internet and technology make it extremely easy to enroll in an online MBA no GMAT AACSB and boost your managerial and business skills. Low entry-barrier degrees are more flexible than on-campus programs. You can also apply your learnings in practical settings on the go. Plus, the extra know-how will help you to run your business more efficiently.
Ditch your landline and re-examine your phone plan
As a business person, you’ll be making a lot of calls- and we mean A LOT! Do you have the best cellphone plan available on the market? Did you recently review the prices? Remember, if you’ve been on a plan for more than two years, it won’t probably be the best option available. So instead, browse for better phone plans, or use technology that is easy to use and free. Use Line or Skype if you’re used to making international phone calls regularly. In addition, replacing your landline with a virtual phone line or VoIP will save you a lot in the long run.
If your business entails a lot of printing, your monthly stationery costs would be hefty. So, stop opting for paper invoices and bills – that’s vintage, especially with so many online options available at reduced prices. Get rid of mailing advertorials and coupons and start retaining your clients with email marketing. It’s one of the easiest ways of reducing costs by a good margin. Besides, should you even be using paper in this day and age of digitalization and automation? So, stop contributing to deforestation, reduce your business’s carbon footprint and go paperless.
Keep a virtual office
Why bother to pay thousands of dollars in rent and utilities for ample office space if your team can work remotely and doesn’t need to gather in a single place for a meeting? Has the pandemic taught you nothing at all? Besides, you can conduct business meetings at any conference hall, co-working space, or even online. But this wouldn’t look professional, right? Plus, you may need to print some promotional materials or fax something. If that’s the case, stop worrying. Most shared office spaces provide a dedicated receptionist, corporate mailing address, VoIP phones, management apps, and temporary printing solutions for all tenants. That’s a considerable amount of fixed expenses slashed off your financial statements right there.
Use energy-efficient appliances
If utility bills are taking a toll on your business expenses, go for compact fluorescent light bulbs. While they cost more than a standard bulb, they function longer and can save you some bucks in the long run. Plus, it would be best to switch to energy-efficient appliances, especially those with the Energy Star label. Again, they’re a little bit expensive but will help you cut down costs – thanks to a plethora of government-sponsored rebates. However, if you want a professional suggestion, contact your power company and request them to conduct a free energy audit. It will help you identify other energy losses in your office space that are burning a hole in your pocket
Start an internship program
Sometimes, on-site help becomes mandatory, and having a remote worker isn’t enough. For example, what if you want to sort out the clutter in your office library? Ring a local college and try establishing a mutually beneficial relationship – they get a great organization to send students to, you get a free workforce. It’s a win-win situation. Or, advertise your opportunity on different social media platforms, explaining how this internship will help them get real hands-on experience. In addition, there’s a good chance you’ll discover talent that you’d like to induct full-time or even part-time.
Numerous people in the US are opting for freelance work. By taking advantage of freelancers, you wouldn’t be paying considerable overheads in employee salaries and whatnot. In fact, you’ll be able to cut costs related to employee insurance, vacations, training, sick leaves, and so on. Furthermore, with a flexible freelance team working side-by-side, you’ll be able to focus on more critical tasks, improve overall KPIs, and dramatically reduce your business operating costs. Nowadays, outsourcing anything is possible, from managing your Facebook page and handling emails to complete full-cycle development projects and website design. Besides, hiring someone with the same skillset in the home country is a little costlier than hiring a specialist from across the planet.
Invest in technology
Exploring new technologies may help your business reduce costs, increase productivity, and improve efficiency. For instance, numerous organizations are now using cloud computing systems instead of in-house hardware. Why? Because the latter doesn’t just cost more, but their maintenance also eats up a lot of dollars.
Irrespective of your business’s current size and financial health, saving extra bucks is always beneficial in increasing long-term profitability and sustainability. This article mentioned a few fantastic cost-cutting tips including, buying used office equipment, seeking business discounts, going paperless, using technology, etc. By adhering to the tips mentioned above, we’re sure cutting unnecessary business expenses will be as simple as cutting cake!