If you are looking to reduce the cost of doing business and improve your overall bottom line, take a step back and study your business practices. Many times, you can find areas to reduce your costs or eliminate them, by simply trading the things that you use for smarter choices or changing your processes.
Here are 8 simple ways to help you reduce the cost of doing business:
- Make a business budget—If you don't already have a business budget, your first step to reducing the cost of doing business is to create one. Create your business budget and stick to it. It is easier to make hasty financial decisions when you do not have a clear budget in place.
- Evaluate your business' insurance policies—Make sure to evaluate your business' insurance policies annually... Make sure that you are not over-insured in any areas, that you do not have duplicate coverage for anything and that you are not insuring any assets that you may no longer have.
- Reduce supply costs—A lot of times, small businesses will find a company to buy their supplies from and stick with them... However, just because you have always used a certain company does not mean that they are the cheapest. As a business owner, part of your job is to shop around and ensure that you are getting the best deal for your supplies. Who knows? Your current company may even offer you a discount if you talk to them about potentially switching companies!
- Utilize technology—You can save a lot of money by simply utilizing technology... Try setting up virtual meetings to cut back on travel expenses for staff. Having virtual meetings also reduces the need for office space.
- Look for different office possibilities—If your business is one that can be run without a physical office building, try working from home to cut back on additional costs.
- Make the most of your staff—Try to give your employees additional responsibilities and tasks so that you do not have to hire additional employees or outsource for jobs. If your employees do not have the skill set to accomplish the tasks you are wanting done, it may even be cheaper to train them rather than hiring additional staff.
- Make small changes for a big impact—There's a lot of last minute things you can do that will create a great impact on your everyday business costs. Try going as paperless as possible and only having employees print when necessary. You can also have them print on both sides of paper when they do need to print. Make sure to have your employees turn off their computers at night and try replacing your light bulbs with bulbs that are energy-efficient instead.
- Get smart with marketing—There are multiple ways to market your business without it costing an arm and a leg... Try to gather customer e-mail addresses to send them e-mail marketing pieces or weekly/monthly/quarterly newsletters, create a blog on your website, or even give social media marketing a try! All of these are inexpensive options to take your business marketing to the next level.