When operating a business, it can be quite a challenge to reduce operating expenses and keep the business costs low. In an unpredictable financial state, what with uncertain internal and foreign affairs, every penny makes a difference to your business and what better way to save than by finding ways to cut costs in business, especially the costs that are non-essential to your business operations.
But, most business owners are at a loss when it comes to cutting costs within their businesses. They face difficulty trying to decide which costs are essential and which ones they can axe off, without jeopardizing their daily operations. So, we have put together a few tips to help you decide on the best ways to keep your business costs low without affecting your bottom line.
#1 Save On Office Supplies
Office supply vendors are not your only option when it comes to office supplies. You can head over to stores that sell in bulk like Walmart or Costco and get your office supplies for a fraction of the costs that you pay to your local office supply vendor.
#2 Trim Production Costs
Production costs are where most businesses think they can’t optimize but, there are lots of small details in the process of production that you can merge with other steps and save on raw materials and labor. Aside from that, you can also make some money from selling off your recyclable waste to companies that use recyclable materials as their main raw material source.
#3 Readjust Your Financial Spending
Are you spending a ton on financial planning and insurances for your business? Look for insurances with the most competitive prices and rates and see if your current provider can match those rates. Also, consolidate any insurance policies or bank accounts that you have for your business so that the fees and charges will also be consolidates.
#4 Virtual Technology Is Your Friend
Are your top management located in different countries and you’re having difficulty arranging for their flights back for management meetings? Arrange virtual meetings via Skype or Google Hangouts and cut all the flight expenses and hassle. Also, use cloud storage for documents and memos so that you don’t have to spend as much on paper and writing utensils.
#5 Opt For Free Marketing Tools
Social media is the new marketing strategy and the best part is, it doesn’t cost you a dime to get your business started with its own Facebook page or business Instagram account. Carefully curate your content around your audience and soon enough, you wouldn’t even need traditional marketing.
#6 Leverage The Human Power
Networking is an extremely powerful thing. Meet with more people and get to know your clients personally. Once they get a feel for who you really are and how good your business is, you can expect them to send one or two of their network connections your way. You can do the same with your customers as well. Reward your customers for each referral that they make and watch your leads grow exponentially.
#7 Find Your Niche
Instead of catering to the whole wide world, find your target market and focus all your marketing and business strategies to provide solutions to that particular niche. Not only will your business be providing much higher quality service or products for this set of people, you would also be significantly lowering your marketing and operational costs.
#8 Monetize Extra Space
Rent out any empty spaces you may have in your production house and use that as a source of income. There is really no sense in leaving a whole office space empty when sub-letting the space would bring you additional income.
Keeping business costs low can be quite a challenge, but with the right moves you will be on your way to reducing your operational costs and cutting out all the unwanted expenses in your business. Optimize every process to use lesser manpower and raw material and consolidate wherever you can. Improvement is continuous and if you do it as often, you may succeed in keeping your business costs the lowest possible.