As a small businessman, what do you when your wholesaler keeps increasing their prices, insurance costs become more expensive each year, and airline tickets cost more with each travel? As expenses escalate, controlling costs in your small business is more important than ever. These are the ways to help you trim the fat and increase your bottom line.
Making use of technology
Technology helps us do things that weren’t possible ten years ago. You should use technology to cut costs, save money and grow your business. From online marketing to using accounting software for small companies to remote desktop applications. Discover what’s new in the technology world and how it can benefit your business.
Whether you have retail, office space or work from home, utilities are a key expense. Although you wouldn’t want to freeze out your clients by turning off the heat completely during winter, there are various changes you can make to reduce your bills.
You can start with scheduling the thermostat. Try setting the temperature to be ideal during working hours when your employees and customers are in the office, then turn it off at night. Instead of using air conditioners, opt for fans.
Creating and sticking to a business budget
You can’t cut costs if you don’t know what’s coming in the business and what’s going out. Budgeting helps you see this and make smart financial decisions. Operating on a budget every day goes hand-in-hand with cutting business costs.
Getting better rates from suppliers
If you purchase regular office supplies or inventory, try and negotiate for better prices with your vendor. Also, see if you can enjoy quantity discounts by buying bulk instead of one box of printing paper per month. You could also ask for discounts for paying your invoices early. If your vendor can’t give you better rates, shop around and try other vendors.
As more small businesses struggle to remain profitable in these economic times, you must make sure yours is running as lean as possible. Remember, the lesser the costs, the higher the profit margins.