What do you do when you need new ways to make a profit in your business — like right now? Business expenses can easily cut into your bottom-line, so here are 10 simple ways to reduce business costs and spending:
1. Use cloud technology
Cloud technology isn’t just hype. It offers solutions to the storage problem. You can reduce paper trails and save on physical-storage fees by uploading documents to the cloud. You can also use cloud services to mobilize your business while traveling and even outsource your accounting to book keepers to save costs on in-house staff.
2. Employ business-payment solutions
Customers who miss making payments can set you back and cause major headaches with cash flow. Start taking direct-debit payments instead. You can use business-payment solutions — such as recurring payments, in-video payments or having the option to accept credit cards online — to reduce expenses and offer flexibility to customers. Using small-business payment solutions helps increase efficiency by keeping payments on time while reducing administrative costs.
Negotiating can help you reduce business costs in several areas, including legal fees and vendor fees. You can negotiate retainer fees or payment schedules rather than taking fees for services at face-value. You can also use your negotiation skills to save your supplier money like a partner would by spotting ways to reduce business costs for both of you, such as using services with automated payments so that clients don’t miss a payment.
4. Look at your shipping and packaging to reduce business costs
Selling physical products doesn’t mean you have to spend the most on the packaging to attract customers. Evaluate if you are charging the right price for the shipping services you offer. Also, research innovative shipping solutions, such as on-demand shipping and customized packaging, to keep costs low.
5. Optimize your workers via cross-training
If you notice there are too many “idle” hands in the office, you may just have too many workers on one specific task. You can effectively reduce costs by cross-training employees to take on other tasks when one department is slow or has no work available. That way you keep your employees and improve operational efficiency so you’re not wasting HR funds on workers not working.
6. Focus on your customers
Selling to the wrong audience can mean wasted time and wasted marketing dollars. Instead, concentrate your funds on the customers who keep coming back for your products and services. Accept direct-debit payments to help expedite your shipping process as an additional perk. Also, focus on bringing profit-producing customers by clarifying your prospect process and offering value that encourages repeat sales.
7. Check your insurance policy
Make sure your policy is covering the necessities and not services you no longer need. Consider shopping around for better offers too.
8. Get Social
Social media is a communication funnel that can save marketing dollars. Utilize free services and try innovative ways to deliver messages, such as product releases via live streaming, without breaking the bank.
9. Compensate with benefits
When increasing salaries may not seem feasible, consider benefits like employee salary sacrifice and salary packaging options. It can save money on taxes for both you and your employees.
10. Consider alternative business locations
Your business location can be one of your biggest expenses, which is a burden if you’re just starting out. Think of cheaper alternatives; for example, co-working spaces help reduce business costs.
Whether it’s implementing business-payment solutions that show you how to take direct-debit payments on a recurring basis or it’s optimizing your workforce, there are several ways to reduce business expenses. However, the key is to research, ask the right questions and take action.
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