As a business owner, you always have to be thinking of ways to reduce to boost profits. While you could cut corners on important processes, the following cost cutting measures won’t hurt your business.
Assess your Outgoings
If you don’t take the time to assess what you’re spending month on month, then you may be waving goodbye to a lot of cash. Simple outgoings that aren’t relevant or costs that have crept up over time can be costing you serious cash. What was initially a good deal under a contract may have renewed at a higher cost, as this can be common with communications, electricity and other tariffs. If you don’t have your finger on the pulse then you may be throwing money away.
A simple phone call to providers can give them the opportunity to give you a better price. This is a quick, painless way to save money in your business.
Consider Outsourcing
While you may have a lot of operations in house, this isn’t always the most cost effective way to run. Some services that you can outsource will actually save you money if they’re not in house. This is because you’re paying a flat fee for a service, instead of running costs from an entire department.
Many manufacturing based roles can be outsourced to save a business money, for example contract labelling can be a smoother process than having that department in house. This can also reduce your outgoings on specialist machinery and staffing costs.
Buy Used Furnishings
When kitting out the office for a new department or replacing older furniture, consider buying furniture that is used. This can save you a lot of money, even if you’re just planning to buy a few things. There are suppliers out there that refurbish this kind of furniture too, giving you a like new feel with low prices.
Rent Space as you Need It
If you’re renting space that you don’t use, then you’re wasting money. Full time office space is only needed if you have full time members of staff that don’t want to work remotely. While serviced offices can be more expensive, if you’re using them for shorter periods of time this will amount to a saving.
This does mean you have to stay on top of the nuts and bolts, to ensure you have space when you need it. However, a little admin work can be worth it to save a lot of money.
Retain Customers
If you’re spending a lot of money bringing in new customers, then your old customers must have an issue with your product or service. A regular customer is much cheaper for your business than a new one, so work to retain as many of these as you can. New customers tend to require advertising, onboarding and other costs that regular ones don’t incur. Up your game if you want to retain more of your customers, perhaps surveying them will reveal why they’re not coming back for more.
