We all know one of the quickest and easiest ways to improve profits for your business is to cut your costs. But how can you reduce your outgoings without sacrificing the quality of your product or service? Well, we’ve put together 5 handy tips for slicing your costs that you may not have thought of already:
- Negotiate lower prices with suppliers – It’s always worth a try. Especially if you have been their loyal customer for a long time. Even a slight discount could save you money in big volumes, and if they are able to give you a discount now you could ask again further down the line!
- Use Contractors – For every minute your full time employee isn’t working you are still paying their wage. Why not hire contractors for carrying out the work and pay them an hourly fee? Some would argue that contractors work harder for you, as it’s in their interest to continue to receive work from your business.
- Cowork – Office overheads can be seriously expensive. Consider looking at working in a coworking environment. Not only the rental rates miles cheaper, they are also a hot bed for networking, referrals and free advice. Have your business card at the ready every time you enter the kitchen!
- Stop buying – Yes, ten thousand premium biro pens with your company logo may seem like a good idea at the time, but are they really a return on your investment? Which other areas are you spending money with little return?
- Save time – If you run a small business you’ll agree that your time is arguably your most important asset. Try eliminating unimportant tasks, plan those tasks which move you closer to your goals, and reduce interruptions if you can – that includes phone calls from the wife (she’ll understand later when you treat her using all the money you have saved).
It’s worth regularly reviewing your business finances to see where you may be able to save money. Another handy tip is to track the time you spend on every task, then evaluating it every few months.