A Step By Step Guide To Reducing Business Costs

Written by Chloe Harwood

Reducing the cost of business is an occupational hazard of being involved in the industry. No matter what business you can think of, their Chief Financial Officer will always try to reduce costs. To mere mortals, reducing costs can become more important. We don’t have unlimited bags of cash at our disposal. So, it could be the difference between successful and failure. And, at the end of the day you didn’t start your business to watch it fail.

Outsource Menial Jobs

I am not trying to offend or demean, but some jobs are not worth your time. Not only do they require a lot of effort, but they also cost your business a fortune. A prime example is your call needs. Frankly, the reason call centres exist is to take care of requirements that use up businesses’ time. It ends up being cheaper and easier to offload this part of your business.

Use Professionals

Using professionals is different to outsourcing because the standard of quality is higher. You might have to pay more, but it is worth the money. Take your marketing needs as an example. A search engine marketing company will offer a quality service that you couldn’t perform yourself. Plus, you don’t have the contacts and know-how to get the job done. Whereas outsourcing is to save time and money, suing pros will save you money and your reputation.

Bring In Interns

Interns are the perfect compromise because you can both offer each other what you want. You need cheap labour to perform crucial tasks. They need experience in a busy office environment to further their career. As long as you don’t string them along, you are not taking advantage of their situation. Plus, they get a lot from the agreement.

Ask For A Discount

A lot of retailers are open to offers. They don’t advertise it because they would rather you pay the full price, obviously. But, in some cases they will be willing to come to a compromise so you should always ask for a discount. Also, if you are a long-time customer, they will want to keep your business. Even if the discount only works out at a couple of percents, that percentage could make all the difference.

Think About Buying In Bulk

It is not a secret that buying in bulk saves you cash. But, it doesn’t always work out as efficiently as you would like. Yes, if you buy a thousand pens the cost per pen will reduce. But, will you ever use those pens? It is only an example, but it is one worth thinking about. If you end up throwing inventory away, it is not cheap. Don’t spend money on items that you don’t need in the first place.

Pay On Time

Incurring financial penalties is easily avoidable. But, you would be surprised at how many businesses spend needless cash on fines because of a lack of organisation. All you need to do is keep a track of your outgoings and pay before the deadline. You could always get an accountant to do some bookkeeping.

There are plenty more ways to reduce costs. The above just a taster to show you how to begin.

About the author

Chloe Harwood