Reevaluating your output, efficiency and where you can save money is part and parcel of owning a business. Small businesses need to count every last penny as a result of ever-increasing expenses.
Therefore scrutinising costs and working out ways to control or cut them is important for you and your business. Here are five ways to keep your business running smoothly with the help of cost-cutting.
1. Save on overpriced warehouse rentals
Self-storage units are a great alternative option to traditional warehouse space and are far more cost effective. With Ready Steady Store, there are affordable storage solutions in a range of unit sizes to perfectly suit the requirements of your business needs.
The great thing about having a unit is the ability to upsize or downsize storage when you need to – small businesses can benefit from this kind of flexibility. It’s never inconvenient, either as you have 24-hour accessibility to your unit. Owning a business isn’t a 9-5 arrangement, so it’s important that you invest in storage that can work with your schedule.
2. Lower office space costs
This may not be completely possible for larger businesses. However, if you run a small business, do you need to operate from commercial premises? If you have an appropriate space at home, create a space to operate from there.
Alternatively, go mobile and if you have a workforce make them flexible and encourage remote working. In this instance, having a firm structure in place including a regular meeting where everyone can catch up is vital.
If it’s simply not possible to remove a commercial office from the equation, there are ways you can use space more efficiently. Create multipurpose rooms and utilise the previously mentioned self-storage unit you’ve invested in to store items that aren’t regularly required. Storing items such as stock or extra furniture will save on valuable office space. This could also be invaluable when it comes to decluttering a home office.
3. Quality over quantity
When things are going well, it can be tempting to add services or products to your repertoire. To keep costs in check, it’s a great idea to keep your offering at a manageable level and ensure you’re producing quality over quantity. By offering a limited number of services you will naturally be more productive and the quality of output will be high.
However, if the demand is there subcontracting is a great way to keep expenses low while avoiding turning away valuable business.
Focusing on quality means you will have satisfied customers and, in turn, repeat business.
4. Consider alternative methods of marketing
Cutting down on advertising costs is a daunting prospect for many. You don’t want to get rid of paid advertising that’s creating you business but it’s worth investigating fresh, cheaper options. There are many potential customers online, now more than ever, so an opportunity awaits. Traditional advertising is notoriously expensive and social media could be the cheaper alternative you’ve been looking for.
Experiment with creating an online presence (if you don’t have one already) and build a following on a variety of platforms. From this, encourage your customers to leave reviews and ratings which will ultimately paint a fantastic picture of your business. Don’t underestimate the power of word-of-mouth.
Of course, you can pay for advertising on social media. While this involves parting with money it is far cheaper than traditional advertising.
Ultimately, you know your business better than anyone, so you will know what advertising is appropriate. Brainstorm the different options available – you could dramatically cut business costs.
5. Don’t waste the skills of your employees
Think about your employees, their skills and experience and match it up to their current responsibilities. There is a chance you’re not operating at optimal efficiency as employees could be carrying out roles they’re not suited to. Your employees are extremely valuable assets to your business, so ensure you’re utilising their expertise.
Taking a look at the bigger picture could mean you have the perfect skills already in your workforce and you could cut recruitment costs.
Remember the point on quality – don’t waste your skills. If you work alone, always keep in mind what you’re proficient in. Try not to get bogged down in admin if that’s not your skill. If it is, then great. Outsourcing tasks can ensure you’re producing quality and keeping your business running effectively at the same time. Attempting to do everything yourself will not be cost-effective.
All businesses are unique, so you will be best placed to choose cost-cutting solutions for your company. These five options show just how much scope there is to reduce your outgoings and at the same time not compromise on output or profitability.