As a small business, you should always look for new ways to cut costs. Your bottom line is the single most important figure on your spreadsheet. It’s your job to make sure that number is always growing. There are two main ways to do this. The first, of course, is to increase sales, and bring in more money. The second is to reduce your outgoings. The more you reduce your expenses, the higher your bottom line. Simple.
Well, nothing in business is simple! But, the basic principle applies. With that in mind, today we’re looking at the various ways you can slash the costs at your company. Naturally, every business is different. Each has their unique set of necessary expenses. We certainly can’t comment on each of those. However, we can show you some broad areas that every business can learn from. Let’s take a closer look.
1. Start outsourcing
From a financial perspective, it doesn’t always pay to hire full-time employees for every job you need. It’s particularly true for small businesses that are just getting started. You certainly don’t need a full-time accountant or lawyer or customer service team. You don’t need a full-time graphic designer or web builder either. Outsource these projects, and start hiring contractors. By paying these experts on an hourly basis rather than a flat salary, you’ll save a small fortune. Essentially, you’ll pay for only what you need.
2. Reduce paper
It’s a simple trick, but some of the biggest companies in the world are following this advice. It’s these ‘vital’ office items that run up enormous bills and cut deep into your bottom line. Try cutting paper out of your budget entirely. It’s a green solution that will save you money. If your business can’t remove paper completely, use a company like Managed Print Services. They’ll audit your business, and provide a more cost-effective printing solution. Slicing these small costs across your business will make a huge difference.
3. Use interns
Employee salaries are often the biggest expense when it comes to running small business. Ask yourself if you could benefit from using interns rather than full time staff. In most cases, the answer is yes. You can pay a much lower salary, and you’ll unlock the passion and insight of the younger generation. Passion is an essential skill that all startup employees need. Look to employ college graduates, and you’ll bring a smart and savvy perspective to your company. Skills can be taught, but you can’t teach drive and ambition. Harness it, and let it drive your company forward.
4. Pool resources
One of the first lessons of business is to treat your competitors with caution. However, we’re going to let you break that rule (just once!) It’s often cost-effective to pool your resources when ordering large numbers of stock or supplies. Get together with another local business and place a large order for shared resources. After all, we all need stationery, paper, and basic stock. You’ll get a discount, and you can share that between you.
When it comes to cutting business costs, it’s all about finding those small savings across the board. The little cuts all add up over time!