As a business owner, the finances are always on your mind. Those spreadsheets haunt you in your sleep, and the red numbers are terrifying! It’s your job to make sure these figures stay at a reasonable rate. Those numbers need to add up at the end of the month, and give you a profitable figure. If they don’t, you need to make a big change in the business. Now, there are two things you can do here. First, you can boost your income with more sales. Secondly, you can slash those unnecessary costs and overheads. Today, we’re going to focus on cutting those costs. Here’s how.
1. Outsource – Most businesses are slowly discovering that outsourcing and freelance services are big money savers. Payroll usually drains the most money from your budget. So, try to avoid salaried employees unless absolutely necessary. It’s cheaper, and more efficient, to outsource the jobs as and when you need them. Don’t hire a web designer, for example, just outsource the task. You can do the same for accountancy, customer service, and copywriting.
2. Negotiate with suppliers – Take a long, hard look at your outgoings. Where exactly are the biggest bills coming from? More often than not, it’s your suppliers. These invoices quickly pile up, and drain your accounts. But, there is a solution here. It is possible to negotiate better deals on your supplies. Manufacturing suppliers like CCTY Bearing typically offer bulk-buying discounts. Perhaps this is something you can take advantage of. Get on the phone with your regular suppliers, and negotiate a better deal.
3. Rethink your energy bills – Another big aspect of your overheads are your utility bills. If you run an office, warehouse, or shop, the energy bills rack up fast. Your first job is to limit the amount of energy your business uses. Take greener measures to lower your energy reliance. Start by turning down the thermostat, and replacing your light bulbs with energy efficient alternatives. Next, shop around for a better deal on your provider, or group services together.
4. Boost efficiency – Costs quickly mount up when your business slows down. The more inefficient your company, the more money it loses. It’s your job to make sure every aspect of the business runs smoothly. Use cloud computing to give everyone instant access to documents. Work towards a paperless office, and give employees access to essential technology. Keep the company well oiled, and you’ll save a fortune.
5. Cut travel expenses – Thanks to technology, there is little need to spend a fortune on travel costs. Even global businesses can jump on a Skype call or host an online conference with offices all over the world. Reduce the amount of flight time and hotel bills, and use more efficient alternatives. There are times when travel is unavoidable, but try to reduce your reliance on expensive travel arrangements.
Using these tricks, you’ll quickly unlock some extra cash in your business. You can use that to invest in boosting sales, and getting your accounts back on track. Good luck!