How to cut costs
Your bottom line depends on two things: how much your business earns, and how much it spends. All too often, though, we focus on growing earnings, when it could be easier to target spending. With that in mind, here are nine ways for you to cut company outgoings.
List your costs
Look at every penny of your outgoings, from wages and office expenses to marketing and IT. Keep a log of what you spend in each area of your business.
Get staff input
Ask your employees for suggestions on how the business can reduce costs – with rewards for the best ideas.
Speak to suppliers
Tell your suppliers that you need to make savings, and ask if they can offer a more a competitive price. If they can’t, start shopping around.
Quiz your customers
The customer is always right, so ask them if you’re providing anything they don’t really need or want – too much packaging or unnecessary mail, for instance.
Cut easy things
Your first sweep of savings could come from things that can be sorted quickly and easily without affecting your business performance, such as excess travel costs or cheaper suppliers of basic services.
Do the detail
Look at every supplier and service to make sure you’re not overpaying, checking your invoices for signs you’re being charged too much. It may not be the most exciting task, but it’ll be worth it.
Outsource where possible
Permanent staff can be expensive, so use freelancers and contractors where you’re able to.
Move to remote working
Reducing the size of your workplace, or working remotely, can help you cut costs.
Once a year, check to see if every service you use can be sourced more cheaply – or cut completely. Online price comparison services are useful for finding this out.
By: David Prosser