Getting Out of the Red: 8 Cost Saving Ideas to Help Your Company Make More Money
Finding ways to cut costs while not sacrificing service is a difficult balancing act for many businesses. And it’s a line that seems to grow finer by the day.
While it’s easy to focus on making more money, you shouldn’t ignore the benefits of cutting costs. In fact, it may surprise you by how much it affects your bottom line.
Saving money to make money. It’s the plan your business needs!
To make it easier, let’s look at eight cost-saving ideas your business can take to help you make more money.
1. Re-Evaluate Operating Costs
One of the first things you should look at when needing to cut costs is the amount you’re paying for everyday operating expenses. What seems like little things can add up fast, leaving more opportunity to save big.
Take some time to check vendor contracts.
Are you getting the best deal on your office supplies? What about your insurance premiums? Or is there someone else that can supply what you need for less?
It’s also a good opportunity to negotiate, or even barter. And if it’s something you can cut completely, like that daily delivery of office breakroom bagels, it saves you even more.
2. Cut Advertising Expenses
Cutting back on advertising expenses doesn’t mean your business will suffer. In fact, advertising can be cheap and effective with a little know-how.
Take advantage of social media. Advertising on outlets such as Twitter and LinkedIn reach thousands in your target audience. But also costs less than traditional advertising.
But social media can also be free! Putting a little manpower in engaging customers through your business profiles can gain an organic following. All without spending a penny!
You can also cut the cost of postage when placing ads in mailings, such as invoices, instead of mailing separately. Or tuck advertisements in bags along with customer purchases.
3. Save on Utility Bills
Making your business energy efficient will not only save you in the long run, but it’s also good for the environment!
To help cut costs, you can do things such as install a programmable thermostat. Buy energy saving light bulbs and power down equipment when not in use. And reseal old weather-stripping and caulk lines.
Reduce paper use by printing double-sided. Use discarded paper for notes. And start using electronic files when possible.
You can also make efficient use of office space by combining workstations into multi-functional rooms. For example, a breakroom that is also the copy room. This not only cuts down on energy bills but rent overhead as well.
Sometimes it doesn’t make sense to have in-house help when outsourcing not only costs less but gets you the expert experience you need.
For example, having an in-house IT guy might give you peace of mind. But what if they’re on vacation and you need help? Or what if your system goes down in the middle of the night?
It may surprise you by how much you can save, plus how much more help you can get, by using a managed service provider. You can view here to learn more about that.
And if you have non-core tasks or one-time projects, but don’t want to hire another employee, look into bringing on a freelancer. You can find an expert in that area but won’t have to pay them benefits that a normal employee would get.
5. Consider Telecommuting
A cost-saving resource that goes largely untapped is the option of employees telecommuting. Many workers have a position that can be successful in a telecommuting environment yet remain in a traditional office – which costs more money.
Telecommuting saves on lower utility bills and office supply costs. Reducing travel and commuting costs. And reduces the amount of space required to house employees.
And if possible, consider moving your business to a completely remote environment for even bigger savings along with tax deductions.
As a bonus, you’ll reap the benefits of improved productivity, happier employees, and lower turnover.
6. Buy Used Equipment and Furniture
New and shiny objects are awesome. But you pay a new and shiny price to get them.
Contrary to popular belief, you don’t have to buy new equipment and furniture for your business. Gently used items can work just as well and come with significant savings.
Save money on items such as copiers and printers. Used vehicles for company cars or customer deliveries. And warehouse storage and equipment items.
Office furniture is another great area to buy used. You can find savings up to sixty percent off of retail price, which can make a huge impact on your bottom line.
7. Cut Employee Costs
When you need good help, but can’t afford many of the wages required, there are ways to cut corners and maintain the level of service you desire.
Consider hiring in a capable worker who doesn’t have a lot of experience. Many times these people are looking to get their foot in the door and will go above and beyond to prove themselves.
For even greater savings, bring in a recent college grad looking to break into the industry. Internships, whether unpaid or not, look great on their resumes and gives you the focused help you need.
Or bring in some family members for extra help. It’s an excellent way to help the younger members of your family get some experience under their belts. And it also keeps the money in the family.
8. Join a Trade Association
Trade Associations are great, not only for keeping up with happenings in your industry but for the cost savings as well.
Many trade associations offer member-to-member savings on supplies and services. Sometimes you can even find special pricing on external vendors. These deals can be on things such as lower insurance rates and bulk discounts on goods.
Check to see if your industry has any trade associations available. Many communities also have general local ones, including local Chambers of Commerce. It’s always a special bonus when you can buy from local dealers.
Cost Saving Ideas Can Help Your Business Grow
Saving money doesn’t have to come at the cost of service. And with these tips, it can actually be an easier process than you first thought.
Cost saving ideas are what your business needs to get out of the red and soar into black!
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