My Secret Guide to Reducing Small Business Costs

reducing-small-business-costs

Just like your own business, the marketplace is ever changing. In fact, in the last several years, the technological and digital breakthroughs have changed the business environment all across the world. If you’re running a small business, you’re obviously subject to these changes. Every business owner – including you – aims for one specific end goal: net profits. Revenues, expenses, traffic, sales – they all lead to the same point, which is the profitability of the business. Here is my secret guide to reducing small business costs:


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Most of us small business owners are focused on improving our service by delivering better products, generating leads, how best to advertise to our target customers, etc. But being wise about your costs is a smart move. In this guide, I’m sharing several tips and tricks that’ll help you to reduce costs to optimize your business potential. 

Outsource the Less Important Work

Instead of hiring new employees every time you need something done, you should consider the cheaper and simpler alternative: independent contractors and freelancers. However, you should not leave your core work in the hands of individuals who barely understand your business.

For example, if you need high-quality content, you shouldn’t bother hiring cheap writing services. Content is king, it is important, and you should never neglect it. However, if you need to deal with data-entry tasks, hiring a virtual assistant freelancer would be your most productive choice.

Freelancers are often less loyal than employees, but they don’t demand as much. For example, the taxes you’re going to pay for their services will be much cheaper, they won’t require any health insurance in order to get work done, and you can always choose to replace them if you’re not satisfied with their services.

Recommended reading: 4 Simple Ways to Save Money in Your Business

Buy Used Products

Your business doesn’t really require the trendiest products in order to thrive. Depending on your objectives, business needs, and the number of employees, you should identify which expenditures could be reduced by identifying the products that you really need to be new. Here are some of the items you can consider buying second-hand:

  • Storage equipment (bins)
  • Furniture (chairs, tables, etc.)
  • Company vehicles (vans, cars, etc.)
  • Cutlery and glassware
  • Office technology (computers, TVs, printers)
  • Personal technology equipment (laptops, smartphones, etc.)
  • Packaging equipment

Consider Reducing Paper Use

Just like cutting down water or energy usage, reducing paper waste can help your business improve its bottom line profitability. That’s not the only benefit. By adopting an eco-friendly office policy, your company’s going to draw the attention of talented and responsible employees who are looking for “green” workplace environments.

Here’s how you should reduce your paper use:

  • Make fonts smaller and tighten the margins of your documents.
  • Don’t throw away incorrectly printed sheets. Reuse them for sketches and notes.
  • Always print double-sided.
  • Instead of printing and posting, take advantage of the internet and send your files through digital mediums.

Power Down all the Machinery and Lights After Work

The electricity bill will always be a big cost to your business. You can significantly reduce it by becoming more responsible when you leave the office. Turn off the lights, shut down all the computers, and appliances.

Every item that consumes electrical power should be identified as “relevant” or “non-relevant” for night use. All you have to do discipline yourself and your employees – test it for a month and notice the difference.

Recommended reading: 6 Simple Ways to Reduce Your Business Energy Costs

Hire Interns

If you’re willing to spend a little time training college graduates, you’ll be saving a lot of money each month. A fresh intern is always a tricky investment. He or she can waste your time, or they can learn extremely fast and help you with essential aspects that demand time, attention, knowledge, and skills.

Hiring interns for the summer can lead to another benefit: if he or she likes your business, the intern may become a valuable employee in the long run. 

Focus on Word-of-Mouth Marketing

Marketing is surely a critical factor that dictates your profit margins all the time. Getting more website traffic or store visitors can translate into more sales. You can use a lot of marketing techniques to expose your products and services, yet the most productive (and effective) one is word-of-mouth marketing.

You can use many techniques to incentivize your business products and services in order for your customers to share your offers with their friends and known-ones:

  • Use online review services like Yelp to improve your brand’s reputation and to encourage engagement.
  • Become active on Q&A platforms like Quora and Yahoo answers. Brand your profile and actively answer people’s questions and concerns.
  • Create a referral program that rewards any promoters for every new lead they bring.
  • Sign up for a college ambassador programs (campus promotion).
  • Develop content and share it on social media channels like Facebook, Twitter, or Instagram.

Takeaways

There are many factors that can influence your business performance, and it’s your responsibility to identify and alter them. When it comes to business costs, finding out what you truly need and what you really don’t is key. 

Over to you now. Have you implemented any of these suggested tips for reducing your business costs? Tell us in the comments below. 

 

Comments 1

Tiffany Harper on Monday, 17 December 2018 20:10

Hello, I would be glad if you share your thoughts about my article.

Best, Tiffany

Hello, I would be glad if you share your thoughts about my article. Best, Tiffany ;)
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