Are you a small business owner and want to find out some effective and realistic ways to cut cost? There are several ways to reduce your expenses. Consider the following tips to cut down cost which can do wonders. Depending on the field and you type of business, some tips might be more relevant than others. For instance, if your business involves printing a lot of documents, tip #4 could be relevant to you. However, the overall point of this article is to implement different cost cutting methods to slash the fat bills that could potentially jeopardizing your business.
Partner With Thy Neighbor
If there are a lot of businesses around you. You can try to cut down cost by sharing and splitting. Form alliance with businesses near you for mutual benefits. For instance, it is a bad idea to buy office supplies in bulk and let the stuff sit around rotting in the shelves. You can however partner with business owners around you to buy office stuff like pens, papers, printer ink, etc., for low-cost. What’s the point of buying 10 ink cartridges from Ink station, for an example, at a discount price when you consume only a couple a month? When you had only used half the stock the other half would have dried. If you are already on a shoe string budget, you could greatly reduce your expenditure by partnering with neighbors. If the partnership with your neighbors last for a long time, you can also expect better discounts from your regular vendors. You can also run events, and advertise together for mutual benefits to cut cost.
Time is money friend!
When we think about cutting cost, we only think about all the materialistic expenses. You need to understand the simple fact that time is a resource – a limited resource. As a business owner you need to ensure that your business hours are used efficiently. Your employees just work for you and they are not totally committed to your business like you are. However when they at work, they don’t sit around wasting your valuable resource – time. They will always find creative ways to cheat the clocking system. A state-of-the-art finger print time clocking system doesn't cost a lot and can help increase efficiency and reduce cost in the long run.
This is simple. College and school fresher’s would love to get some professional work experience and they either work for free or for lower wages. Offer internship to students who can take care of a lot of trivial tasks and assist your core employees. This will increase the overall productivity and lower the expense.
Printers are found in almost all the offices nowadays. It is quite an essential piece of hardware next to computers. However, printers have the potential to burn a hole in your pocket every single month. Although, ink jet printers are dirt cheap and seem like a measly investment, if you have to print a lot of documents, you could be losing a ton on money in the long run. If you hardly use the printer, an ink jet would do. But if you need a work horse you need to get a monochrome laser printer to save money. Also, some printers could be true ink hogs and some are very efficient. Do you research and find the most economic printer that you can afford.
A research done by print pioneer Xerox revealed that more than 40% of printed paper in an office environment is discarded within a day. Encourage your employees to avoid using printers as much as possible and encourage them to use e-mail and cloud-based file sharing services like Dropbox and Google Drive to share files and documents.
You should make use of every square foot of space effectively. Keep in mind that your real estate is an asset and assets are meant to make money. Even if you are losing money (God forbid), you should rent out the space that you are not using anymore.
Hope our cost cutting tips help you save a good deal of money. If you have some tips that we have missed, please feel free to share them in the comments below.