Cost Reduction Solutions Can Help Get Your Business On Track
Being your own boss can be a struggle, but take a look at out our cost reduction solutions. You will be able to increase profits and bring more business if you follow some simple rules.
As a small business owner, your goal should be to reduce costs, maximize profit, and increase revenues. Although simple when we think about it, it can be tough to implement given the recovering economic times we are now in.
Let’s look at the top 10 cost reduction methods to use in your business as well as at home.
1. A different approach to staff hiring
Studies show that thousands of dollars are put into the hiring of a new employee. Because once you have hired someone, you will invest a lot of money and time in training, vacation time, sick leave, and insurance.
As a result, many companies are successfully turning to cloud sourcing. That means that you should hire a qualified professional to work remotely. Some of the best professionals are freelancers that deliver good and fast results. You will find their portfolios online on many dedicated sites. Check out Freelancer, Elance, Upwork, Guru, to name just a few.
2. Rely on interns
For simple tasks that don’t require a specific professional experience, you can bring in interns. Fresh out of college or still students, they charge a small fee, if any. Plus, you will help them gain work experience. It’s the go-to trick in finding cost reduction solutions.
3. Go for less
Companies, as well as individuals, tend to buy in bulk. We do it because it is cheaper. But have you thought just how much of what you buy you actually use? More often, you end up with tons of things you do not actually use just because you wanted to save a few bucks. Make a list of the exact amount of office supply, for example, needed and stick to it. No need to buy the whole store for a few pens.
4. Get rid of finance charges
Small business owners tend to spend thousands of dollars on late payments for loans, membership fees, credit card processing fees and more. Start paying them when they’re due.
If you’re having problems with keeping up with them, online payment services come to the rescue. You can schedule an alert and you’ll get notified when your bills are due.
For a long time, companies have resorted to offshore manufacturing because it was cheaper. No more. According to a study, it is believed that by 2017 you will be paying about as much by going offshore as you would by choosing onshore manufacturing. So why not choose the US over China, for example? You will reduce costs and cultural barriers, increase freight and inventory investment.
6. Social media is in
Digital marketing is the new best thing, and it can help your small business grow impressively. Social media is a great gateway to attracting more customers. Set up your website and social networks and start posting. Getting a Facebook, Twitter or LinkedIn account is free, and you can engage hundreds of thousands of people. It’s one of the ideal ways to reduce costs when it comes to marketing.
7. Go green
A research by Xerox revealed that 40 percent of office paper is discarded in just a day from printing it. You might say that paper is not that expensive, but if we were to add printing supplies and printer maintenance, the expenses pile up. Instead, you could use Google Docs, DropBox, and many other online services.
If you’re just starting your business, bartering is one of the best cost reduction solutions. Check out barter sites such as TradeBank or U-Exchange and build up connections while reducing expenses.
9. Make your office energy-efficient
Save energy and money by turning to energy-efficient appliances. They might be more expensive but will save you money in the long run. Take advantage of the fact that you can get a free energy audit from the power company. They will advise you on ways to reduce your energy bill.
Chances are you spend more on insurance than you have to. Shop around and compare policies until you find low prices. And you can always choose to use an independent agent. They are most likely cheaper than companies because they are not financially bound to them.