Boost Your Bottom Line – 6 Tips for Cutting Costs for Your Business
Getting ahead in the business world can often necessitate cost-cutting for the sake of your bottom line. If times are tough or you’re just starting out, here are a few ways to reduce expenditure.
- Office Space
Leasing office space can seem like a good idea at the time, but when the monthly rent is due, you may find yourself reconsidering. Rather than worry about crippling payments, maintenance, and other considerations, you can instead opt for premium serviced offices with one low monthly cost. Moving your business to a serviced office enables you to utilize all standard office services such as reception, mailing, cleaning, and internet, but without the stress of overheads.
- Utilize Virtual Assistants
Virtual assistants, many of whom operate as freelancers around the world, are expected to make up as much as 40% of the workforce by 2020. While this is a staggering forecast, it’s not overly surprising, as virtual assistants can add so much convenience to your working life.
If you find yourself bogged down with various mundane administrative tasks, there’s every reason to consider outsourcing them. Not only can you then free up time for tasks that make you money, but virtual assistants are typically more affordable than hiring someone in-house to handle those responsibilities.
- Be Smart with Staff
As your business begins to prosper, you may find yourself stretched too thin. There are only so many hours in the day, and trying to handle everything yourself can lead to burn-out. Conversely, hiring staff is a significant cost, and therein lies the conflict. When it’s time to take on employees, it might work out more efficient for you to consider options such as hiring an intern? By doing so, you can pay them an intern rate while also helping them to establish work experience in their chosen field.
- Shop Around
When you’re fitting out your new office space, or shopping around for products and services, it makes excellent business sense to get quotes from several prospective vendors. Cutting expenditure for your business is crucial, so always be ready to put in the effort to get the best deal. While you it might occupy your resources to contact and compare quotes from several different firms, the difference in price could be enough to warrant such effort.
- Ask for Discounts
Most businesses deal with the same suppliers on a regular basis. Many suppliers are prepared to negotiate discounts for long-term or high-volume commitments. If you don’t ask, you don’t receive, and being a loyal customer may mean you’re due for a reward. The less you pay for your inputs, the more significant the profit margin.
- Choose Software Wisely
In today’s digital world, it’s crucial to have software to run your business – whether it be a POS system, accounting software, or CRM. However, business software can be expensive – running into the thousands of dollars for the initial purchase, plus ongoing monthly costs. Fortunately, there is a wealth of cloud-based solutions that are available at low cost. Many of these solutions operate on a “Freemium” model, whereby the basic versions are free, and the user only pays to access more advanced features or once they exceed a certain number of users. Many small businesses can make do perfectly well with the free versions in the early stages of their growth, saving considerable expense.
The more money you save through smart business practices, the stronger your business will be at the end of the financial year. Take the time to try any of these cost-cutting measures and reap the rewards in the long run.