A large number of small business operators are faced with the challenge of coming up with ways to cut down their running costs, particularly during tough economic times. There are many ways through which small business owners can cut down cost without having to sacrifice their efficiency. While trying to significantly increase profitability is key to survival in today’s business environment, small business owners should first try to aggressively reduce costs if they want to compete with large firms. Below are a few tips that will help you cut down cost.
Save on power
Most staff may not understand how much small businesses pay just to keep their workplace physically open. Always encourage your staff to switch off unnecessary lights and to turn off their computers when they are not in use. If you have 4 computers in your office for instance, in a nine-to-five work setting, you can save up to 8 hours of power, per computer, every evening. In a week, you can save up to 320 hours of computer run-time.
Outsource some tasks
One of the primary reasons large companies consider outsourcing is the reduced costs. Small businesses can also take advantage of outsourcing. Sometimes maintaining an in-house infrastructure can be a burden for businesses. Small business owners can transfer some of their business requirements to a contractor who can help save on capital expenditure. Moreover, small businesses are no longer obliged to invest in staff training, buying expensive software, or even investing in modern technologies.
Get items in bulk
Another strategy is to buy office supplies in bulk. Purchasing items in bulk will minimize the cost per unit and may reduce the amount of cash you pay on supplies and products. Rather than buying from retailers, buy from wholesalers and manufacturers. In addition to getting the items at reduced price, you can strike a deal with wholesalers to get a great discount. The internet is also a great avenue. There are many online stores that offer great discounts on office supplies like software, online business services, graphics, etc.
Cut on printing cost
Printing is among the things that increase production cost in most companies. However, the good news is that there are many ways you can keep printing cost to an absolute minimum. One of the ways you can reduce printing costs is to consider doing it in-house rather than outsourcing. If you have computers, simply install graphic design/desktop publishing software. Most of these software are available online free of charge or at cheap prices.
Reduce business trips
A large part of business trips are bore out or obligation and not necessity. You need to be open with your business associates and know if your presence in person is really important. Recommend alternative means of communication such as telephone, video conferencing or webcams.
These are just some of the things small business operators can do to cut down costs. Don’t be afraid of being branded a “bad boss”. Bring your staff together, explain that your primary goal is to retain their jobs, and ask them to assist you in achieving this.