Every cent counts when you’re running your own business, especially when that business is still new and small. Doing what you can to cut costs and curb spending can only mean that you’ll be saving some extra money in certain areas, and this is always a positive outcome. Even the smallest and simplest of changes can help to improve the bottom line in a business.
Every cent counts when you’re running your own business, especially when that business is still new and small. Doing what you can to cut costs and curb spending can only mean that you’ll be saving some extra money in certain areas, and this is always a positive outcome. Even the smallest and simplest of changes can help to improve the bottom line in a business, so the next time you review your expenses, why not consider implementing a few of the following suggestions:
Curb travel expenses
Try and avoid travel that doesn’t generate revenue and when travel is essential, opt for cheaper flights and accommodation.
Maximise your space
If there are any spaces in your office that are not being used, consider renting them out. A spare office or storeroom could bring in a little bit of extra cash each month and that never hurts. Also make sure your current use of physical space is not leading to wastage. Try and consolidate and you can even have certain spaces fulfilling dual purposes.
Shop around for insurance
Insurance is a necessary evil but it doesn’t have to be something overly costly. Shop around for a few different quotes from providers and then ask your current provider to match the lowest one, or simply change over to the one that offers you the best price. You also need to ensure that you’re not over insured and that you don’t have duplicate coverage of any kind.
Recycle and reuse
See if there are ways you can turn leftover materials into other products you can sell or ways in which you can reuse them around the office. Selling excess materials is also an option.
Avoid unnecessary debt
Be a strict as possible with your spending and try to avoid buying anything unnecessary, or anything that will place a heavy financial burden on your company. Sure, certain necessities are costly and will push you into debt, but it’s the degree of debt that counts at the end of the day. You don’t want to get in over your head.
This is essentially joining forces with other small business so that both of you can benefit in some way. This kind of collaboration with other businesses in a similar position to yourself can really help you save a buck or two, and every little helps.
Don’t buy in bulk
Whilst on the surface this may seem like a cost-saving manoeuvre, it can ultimately result in wasted money. Manage your inventory closely and try and buy only that which you need. Buying something in bulk because you think it will save you money in the long run can often backfire, especially if the bulk items have a shelf life.
Time is money
At the end of the day, wasted time equals wasted money. Make sure you and your staff are maximising the time you have daily and that you’re being as productive as possible. Time management is an important ingredient in the smooth-running of any business.
Negotiate and barter
As the saying goes: “If you don’t ask, you don’t get.” Don’t be afraid to ask for a discount from your suppliers or negotiate wherever possible. The reality is that every business is trying to make money and more often than not, chances are a vendor will be happier giving you a discount than losing your business altogether.
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