Reduce Small Business Costs 7 Easy Ways
While most entrepreneurs focus on increasing sales to increase profit, lowering expenses is equally or perhaps more important when trying to achieve or maintain profitability. Efficiency in your code structure pays dividends!
Cutting business expenses requires some tough choices and trade-offs, but it doesn’t have to be a painful process, nor one that fundamentally alters your business plan.
Reducing costs in your small business and creating processes that will cost you less money over time doesn’t have to take a lot of time or even a lot of effort. In many cases, it’s about making smarter choices when deciding where to put your small business funds.
There are ways to reduce costs without feeling the pinch.
1. Use technology – Using efficient tech whenever possible can help you save money and take your business forward. For example, hold meetings virtually so you can save on travel costs.
Self-paced training and free online training programs are also an excellent way to expand your know-how, right from the comfort of your own home or office when it suits you best. There are several exceptional online business training resources that cover just about any topic you’d want to learn about.
2. Ditch Your Landline – Landlines Are Overrated
The time of the landline is over. Long over. If you’re still using one, you’re bleeding money as it is an unnecessary business cost. Instead, you should use your cell phone, VoIP, or even virtual phone lines to save money.
3. Go Paperless – The cost of paper, ink, mailing supplies, and postage may seem minimal at times, but it can add up to a large business expense. Going paperless by not printing unless necessary, filing all important paperwork on your computer instead of putting it an office file cabinet is both eco-friendly & reduces business costs.
4. Reduce Credit Card Debt – You may be able to reduce your immediate business costs by charging business expenses to your business credit card, but with interest rates and possible fees, this is not an effective way to reduce your business costs long term.
5. Cut Back on Software – how many applications do you use every day? There are probably a few applications you have on your computer or phone right now that you have never used or very rarely use. You can reduce your business costs by only purchasing the software you really need and avoiding the cost of purchasing other apps, plus any upgrade fees necessary to keep the software current.
6. Buy Refurbished Equipment – buying brand new retail-priced equipment is a big business cost. You can reduce the expense by buying refurbished furniture and equipment that is often as good as the brand-new variety.
Remember that refurbishing doesn’t mean just one thing, it can involve reupholstering, adding a new finish or a different seat, and even painting some old furniture. Think about all those Pinterest before and after projects you see, it takes a simple touch and some patience to transform used equipment into a modern masterpiece.
I have seen businesses buy refurbished laptops and store fixtures.
7. Bartering is an exchange of your goods and services for goods and services you need without any cash changing hands. Successful bartering agreements can reduce your business costs.
Each of these seven ways to reduce business costs focuses on making an alternate decision that can save you money. If you can adopt a “business cost-friendly” mindset, it helps you reduce your business costs every day.
Many of these smart decisions will become second nature and eventually work their way into all your business decisions. It’s part of my motto to GRAB LIFE BUT THE BOTTOM LINE.