Reducing costs can help a business to be able to continue. Overheads can get so expensive that they become too much for an owner to cope with. Finding ways of cutting costs can have a huge effect, and may mean the difference between continuing to operate or having to close down. You may well think there are no more savings to be made for your business, but let’s have a look at a few savings to see if you have already made them or not.
Premises can be one of the biggest financial drains for any business, and you really need to ask yourself if you really need them. Working remotely has become much more common because of the advances in technology that have allowed it. Ask yourself if you could move into cheaper premises, or if you and your team members could work from home.
Virtual meetings can be a help and you can keep in constant contact throughout the working day. There is nothing you cannot do online these days, and you should make the most of an opportunity to get rid of the high costs of premises.
You may think this is not possible if you have a retail outlet for example, and of course, you would be right. In this case look at moving your store to premises that are not so close to the center of wherever you are located. The further you move away from city center locations, the cheaper the property gets. If you have a loyal customer base, this will not matter at all. If you are a new startup, it is still the best option. If your product is good enough, people will always travel to buy it.
Some people take this stage a step further and move to a totally new location that is much more affordable. Mexico, which you can learn more about here, is a typical example of somewhere that the running costs of your business would be a lot less, and also has the advantage of opening up new markets for your business. There are, of course, many more options to be explored though.
Alter your marketing strategy to make social media the main focus. This costs little, although it will need time devoted to it. Facebook, Twitter, LinkedIn, and Instagram are just some of the social media platforms that could help you to reach many thousands of potential customers every day.
Make some videos and put them on YouTube. As the second most used social media platform this has to be worthwhile. They do not need professional actors to take part in them, or camera people that are used to dealing with films. In fact, the simpler the better and if there happens to be a mistake or two, you will find that viewers love it.
Social media was ignored for many years by big businesses, but now they have realized its potential and there are not many of them without business pages on most of them.
Buying Fixtures And Fittings
Take the time to look at the used marketplaces when you have to buy new desks, chairs computers or anything else. You may be surprised how good the quality of some of them are. Some of the much larger companies, if they are refurbishing their workplaces, will send the old furniture to local warehouses to be sold. Often they are no more than 2 or 3 years old and in a very good state of repair.
Used computers have usually been refurbished and operate as good as new. The cost of them compared to the cost of new ones can save you a fortune. If there is something you must buy new be prepared to barter. It could be that you exchange some goods with the supplier, or negotiate a discount as a loyal customer. It is all about reducing the cost of the fixtures and fittings you need and this is an area where you stand to save a lot of dollars.
Create A Budget For Your Business
Create a budget for your business, and then stick to it. If your budget says you can only afford to spend so much on stationery each month, take care to buy just what you need to stay within the limits you have set yourself. Being below budget on anything is a bonus.
Try to allow for an emergency fund to be saved. Just a little each month will soon build up, but then if disaster strikes and you need to spend some money quickly, the emergency fund could prevent it from derailing the rest of he budget plan you have created.
Dump Payments You Do Not Need
Go through all the payments you have to make, whether that is through your bank or in cash. Dump any you do not really need, as these are an unnecessary expense. There could be old subscriptions, perhaps for some software support that you no longer use, or maybe for some sort of Internet provider that is outdated.
While you are looking through your bank statements for these things, check that all the payments shown have been made by you. Banks are very good and do not normally make mistakes, but they do sometimes happen.
Check Your Tariffs
Check the tariffs on things like cell phone and utility bills. These are very competitive areas, and especially if you have been on the same tariff for some time, you may be able to get better deals.
You need to be aware that these providers are desperate to keep your business, and if they will not give you an improved tariff, tell them you will take your business elsewhere. That often does the trick, but if not, be prepared to make a change of provider. This used to mean you would have to change your mobile number, so for many people, it was not an option because of the business that could be lost. That is not the case now and you are able to take your existing number with you.
The same principle applies to bank charges. Although there are some that are set in stone, the bank managers do have some leeway to reduce your charges, and you should at least ask the question.
Whether your business is experiencing financial problems, or you just want to make it more profitable, cutting costs is never a bad idea.