Running a successful business requires you think and rethink about your expenses, and how you can bring them down. Not every business is heavily funded, which is saving money should be the top priority of any business that’s gaining ground. Contrary to popular belief, you don’t really have to take drastic measures to save real money with your business. Even doing simple things can take you a long way.
There are many businesses that are getting closer to shutting down just because they aren’t effectively taking care of their finances. In order to create a business that gives long term returns, you have to work your way up by saving money wherever, and however you can. There are no second thoughts on that.
In the following article we discuss a few simple yet effective ways to bring down business expenses by taking simple steps:
1) One thing that can easily eat up into your expenses is the regular bills that pile up. Right from the rent to employee salaries. All of this can really add up to your expenses and make it hard for you to reinvest your profits the right way. The solution is to consider hiring remote workers by outsourcing the majority of your workload. This can be done if it isn’t necessary for your workers to be physically present.
2) If it isn’t practical to outsource your work and hire remote workers, then you’ll have to look at better ways to manage your expenses since having workers onsite becomes important. You can start by looking into the option of getting an incubator space or going for the option of finding space in a co-working office. Whatever you choose to do, just see to it that you don’t ignore the importance of lowering your business expenses.
3) You can also partner up with other business for the office space as a cost-cutting strategy. There might be businesses who have extra rooms available, which means that you could get them at a much cheaper rent. Giving you an extra edge when it comes to lowering the expenses. This not only helps you save money but also saves you from signing up for a “restrictive lease” of your own.
4) Search for consignment office furniture stores so that you can buy your furniture at a much cheaper rate. Finding a high end COF store isn’t difficult since most urban areas have them. By taking this step you’ll be able to buy good quality items that are barely used, which is why they are in excellent condition. And the best part? You don’t have to pay a big price.
5) Try to save as much energy as you can by taking up to practices that help you do that. Simple things like turning off the lights and computers when your day ends can make a big difference in the long run. You’ll be able to save on your company’s utility bills and also help your team strengthen their positive work habits.
6) Go for free software options rather than the paid, premium ones. Whether you’re looking for a word processing software or a graphic designing tool, you can always find solutions that don’t cost a dime. Of course, you can always invest into software when your business has become more stable and you can afford it without much of a difference.
7) When it comes to hiring an accountant for your business, go for a good one. Yes, professional accountants don’t come cheap – they’ll probably cost you more than a regular one. But the fact remains that their vast financial knowledge and know-how of the tax law will help you get more returns. It’s a much better option than doing the taxes yourself and not saving on them.
8) One of your goals should be to bring down the legal costs because legal services can cost you big time. By getting in touch with your lawyer and discussing it may help you cut down on costs. It’s a step that every business should take at a point of time.
9) Ever considered bartering your services with other professionals to lower your own expenses? There are many professionals out there who would be ready to do so. Trading services and partnering with others can help you get a number of business related services at no cost. Services such as graphic designing, printing, web development, etc are some examples.
10) Aim at getting more repeat customers. The fact is that it’ll generally cost you more to acquire new customers. So getting repeat customers almost always helps you lower your marketing costs by helping you acquire more business. The way to go about this is to build a relationship with your existing customers so that they buy from you again and again. This can be done through follow up marketing via email.
11) Advertising is another expense that can quickly add up and make your business expenses more difficult to bear. So besides running ads, you should try to leverage your existing clientele or customer base. How? By asking for referrals. If y you’ve got satisfied customers then they would be happy to recommend you to their contacts. This slowly and steadily helps you create a much stronger relationship with your customers while they bring you more business.
12) Consider sharing advertising costs by looking for a business partner who is okay with it. You can split the ad costs and get mutual gains, something which can help you great especially when you’re advertising through traditional channels. You’ll end up getting the same amount of exposure at a much lower cost.