by Zoe Zorka
Small businesses are all being are constantly squeezed by the cost of things, and by the various expenses that you have to pay out for. So now more than ever, it is important to look at and control the costs to your business; if you don’t, it can really have an impact. So here are some of the things that you can be doing, to help to reduce the costs that are involved with your business. Stay on top of it all and it can reduce the negative impact that it can have on your bottom line.
Office Space Costs
If you require an office space for your team, then one of the first things to look at when it comes to costs, is if you can get an office space for a lower cost. Depending on the market in your area, you might have the chance to take advantage of some depressed prices. You could also speak to your current landlord to talk about reduced rates; rent is one of your largest costs so cutting it down can be a good way to keep costs low overall. Better yet, if you can find somewhere much smaller to work, for a much lower price, how about having you and your team take certain days to work remotely from home? Of course, some businesses won’t suit not having the team all in the same place at the same time. But there are many business types that it would suit, and to save money, can be worth looking into.
Buy Used
Businesses come and go which results in a lot of gently used equipment on the market like machinery or computers. For instance, slightly used espresso machines will work just as well in your café at a fraction of the cost. A computer that is a year old performs just as well for handling accounting and is substantially less than buying new. Always look for great deals on used equipment and tech.
Barter for Better Deals
The art of bartering is something that has been used for years and years, and has been used as a way to exchange goods and services. If your business has some things that you could use to your advantage, then it could be a good way to barter for better deals in your business. For example, if you have a graphic design business, how about offering something to a wholesaler, for their website, for example, in exchange for a discount on your regular order with them? It has got to be worth a try at least.
Cut Down Utilities
Any office space brings with it some extra costs, from insurance to utilities. But the good news is that there are ways to cut down the costs of these things. For example, investing in load management software can help to reduce costs, because it can balance the supply of electricity on the network, by adjusting or controlling the load rather than the power station output; eliminating the need for peaking power plants. It can be such a good idea to look at some ways to cut the costs of the things that you need to spend on, but aren’t the costs that grow the business.
Reduce Advertising Costs
Many small businesses have shown that they will typically spend around 5% of revenue on advertising. So the bigger the business, the more you will spend. But even for a business that is just starting out, it can be a figure that is quite high. But advertising doesn’t need to be expensive; are you using things like the power of a website, and social media profiles to help?