In business, every penny counts so here are our 10 ideas for cost cutting measures:
1. Advertising – Your business could work on joint advertising with adjacent businesses, so that the costs are split between you. You’re still getting full advertising but at a percentage of the cost. Directory websites are another viable avenue for advertising, endorsement and referrals.
2. Think recycled – Buy recycled ink cartridges or refills, rather than new ones. Also, consider reconditioned office equipment to reduce expenditure.
Around 40% of print-outs are destroyed or discarded within 24 hours, so printing sparingly saves money and trees.
3. The bills – Check out the best deals available, although it’s easier to stay with the same company, often you can get a better deal elsewhere. When you tell your existing utility company or phone line provider about a competitor offering a better deal, they will often match or better it rather than lose a customer. Plus, bills can often contain errors so it’s worth checking them to make sure that you’re being accurately charged.
4. Insurance – Again, while it might seem like unnecessary hassle, switching between insurers can be a cost-effective measure, whether it’s personal, health or corporate insurance.
5. Temporary staff – It could be that business is seasonal or that it has peaks and troughs in activity. Temps could be used in peak times while a permanent core staff can work the whole year. This way, you cut the wages bill whilst ensuring that you always have adequate staff cover.
6. Couriers and shipping costs – This is another instance in which shopping around will benefit your profit and loss. Don’t get lazy, it could cost your business extra and you don’t want the courier to get complacent. Consider making any off-site storage on-site too.
7. Wining and dining – If you have to wine and dine clients, does it have to be at the most expensive venue in town? Instead of a meal included meeting, could you transfer to a coffee or in-office situation, which will mean less outlay? It sounds really frugal, but the pennies mount up to save you pounds. Saving £20 a week this way, will add up to a very healthy £1040 in a year.
8. Collection not delivery – This isn’t always practical, but if there is a delivery charge attached to a purchase and you could pick it up, do so. For items like stationery, crossing through town and loading up your own van may be cheaper than paying the supplier’s delivery charge. Of course, this only works on routes that aren’t likely to cost you more in petrol. You could always try to negotiate a waiver of delivery with companies that you make regular purchases with.
9. Outsourcing/cloud sourcing – Certain functions within a business could be outsourced; content writing, IT, web design and customer services lend themselves well to outsourcing and cloud sourcing. You can hire an expert for the time and work that’s required, rather than …