Regardless of the particular branch of business an entrepreneur might find themselves in, one of their main goals will always be trimming down the costs. Even if you are not on a shoestring budget, saving up on expenses is always a smart way to go. Here’s some advice that will help you cut business costs.
Being one’s own boss is the dream of many and the current business climate has helped many people achieve that, without actually owning a business. To elaborate further, it’s the Internet that has allowed many people to work as freelancers – it has enabled them to post their CVs and portfolios on freelancing websites like Elance and Freelancer and offer their skills for a limited time period. Although the fact that these aren’t your employees (they can’t be tasked with whatever you please) is a true downside here, the benefit of outsourcing, or cloudsourcing is that you can hire people based on your own needs. This means that you can pay per service, instead of keeping a website designer, a writer and a graphic artist on full-time payroll. Cloudsourcing allows you to be flexible.
On another hand, there’s a way to get by even cheaper; perhaps even a way that lets you hire personnel for free. For example, some positions are needed at all times (paper filing, etc.) and you won’t be able to find any help in this department by outsourcing. This is where temp agencies kick in – hiring a temporary employee is a cheaper alternative to filling the position with a permanent one. Temps however, do come with their downsides, in addition to the fact that some temp agencies may put a large dent on your shoestring budget. The solution here is finding students that are looking to get internship – they will sometimes even work for free!
Many top retailers won’t advertise discounts, although they will offer items at lower prices, when small businesses and startups are the ones buying. Initiative is key here – don’t wait for a retailer to offer you a discount, go ahead and ask them. Keep in mind that the larger the number of items you’re buying is, the bigger discount you’ll get. Be careful, though – if you buy too much, you will spend more money on items that you won’t be able to use.
Careful with Buying in Bulk
On the previous note, you have to be careful with wholesale. While some retailers will rarely advertise discounts, others will actually rely on you buying in huge bulks; bulks that you might not actually need. Cashing out for everything in sight with a ridiculously low price tag is not the smart way to go – Black Friday has taught us this. Take pens for example; would you buy a thousand pens if they cost $500? Sure, this sounds like a fantastic deal, but what is a startup of no more than 30 people going to do with a thousand pens? The key here is always being aware of your needs!
Storage Space Efficiency
Being punctual with your deliveries makes a huge impact on customer satisfaction – if you’re always making your deliveries on time, a customer is more likely to disregard an occasional delivery mistake (which is not to say that you don’t need to be extra careful at all times). Timely deliveries are hugely dependent on warehouse efficiency and no storage space is efficient without an elevated work platform or two – so, either opt for rentals, or invest a portion of your budget for buying new ones.
Cutting down business costs is just as important as increasing your profits – the less money you spend, the more stable will your expenses be and this will lead directly to productivity increase and expansion of efficiency. Keep an eye on the mentioned advice and start earning by saving.