For a startup business, every penny counts and the slightest reduction in revenue can have an impact on your company. It got you thinking, “How to cut business costs?” A huge overhaul of your financial capabilities shouldn’t be necessary. In fact, one can cut business costs to reign in the profit optimally.
In the office
What variables there are in the office you can control to reduce expenses and cut business costs? You might be surprised by small changes or habit formation you can do to lessen overhead costs.
Rethink your office space
When you need to rethink your office space, make sure that every nook and corner is efficiently used. Don’t rent office space just because it makes your business look good. In an article by CCIM, businesses are shrinking their office footprints in the office to maximize their productivity.
For instance, they’re using virtual offices or coworking spaces for business meetings only. While these apply best to digital service sectors, food, events, or other sectors can think of ways to make the use of their office space. It all boils down to rethinking and redesigning your office to cut business costs.
Practice passive or small-saving measures
There are eco-friendly or energy-saving measures you can practice in the office to business costs. These practices might be small in nature, but when compounded in the long run, it can save you enough money for more business opportunities. These are practices you can do:
- Use tint in commercial windows or blackout curtains especially when you’re using air conditioners at the office. This blocks the heat affecting your workspace. When the room is too hot, your AC might work harder to reach that desired temp in the office. When it generates more power, well, so does, your utility bills.
- Save electricity when not in use. It’s pretty common – when the equipment is not in use, turn the power. But, know which equipment first! Some appliances generate lower power by keeping them on for the long run than turning it off and on.
Telecommute more often if you can
Telecommuting is one way to cut business costs; however, that popular practice remains untapped. Telecommuting allows businesses to finish work in a flexible manner – which fuels high employee morale and productivity.
What’s more, it reduces water and electricity bills, space used, travel expenses, and more. Meetings can be done virtually as well. But, one downside to this job is the use of unstable internet conditions which can hamper work.
Buy important, new (or gently used), quality equipment
When buying assets, it’s still important to purchase quality equipment and appliances that can last for years. It’s all about knowing which equipment can work for your company.
You don’t have to buy something new if there’s a gently-used item ready for usage. Likewise, you don’t have to use equipment that’s outdated and cheap if it won’t work for your company. This goes with printers, company cars, bins, packaging, and furniture.
Employees and productivity
Sometimes, it’s your work habits that can save you money! Inefficiency in management practices can lead to workplace woes. We’re not just talking about online productivity tools such as Trello, Monday, or Slack, but of discipline and ethics that can produce valuable work.
Practice time and attention management
Have you heard of the phrase, “Time is money?” In business, that’s literally true as wasted time turns to wasted money. Your team’s procrastination can lose you clients and delay projects. Often times, these delayed projects will cost you more expenses (traveling to and fro, buying apps or office supplies, and etc.).
To curb procrastination, you need to instill proper time and attention management habits. This can be done by instilling keystone habits in the workplace, using to-do lists, organizational messaging, and more.
As a startup owner, maybe you might look into hiring or outsourcing freelancers or project hires because they do jobs in the shorter-term. For instance, getting a freelance web designer from time to time will save you $1,000 than hiring someone for the company.
Outsourcing saves you from paying a portion of their taxes, paid time off, and benefits. Simply saying, you’re paying for the completion of the job done.
Invest in company training
Do you know how to enrich your employees? Why not give them some training, lectures, or workshops to enhance their skills? This growth-mindset allows them to boost their knowledge, enrich their abilities, and love their job even more.
But, what of you as a business owner? You get to utilize your employees’ skills properly at work to lessen the load of hiring new workers. For example, your employee might be great in graphic design and web design at the same time. Maybe he or she is adept at content creation or marketing research. Remember though, don’t overturn all responsibilities to them to avoid employee burnout.
Maximize digital marketing efforts
Everything’s online, so you better go online. Maximize your digital marketing campaigns with your website, social media, content, and more. What’s good about this platform is that you start marketing your company for free! Over time, you may find yourself subscribing to paid channels for ease of daily posting or creating content.
Great marketing content usage, creation, and distribution sites include Pixabay, Unsplash, Freepik, Canva, Promo Republic, Hootsuite, Buffer, Later, and etc.
Other ways to cut business costs
Mayhap you know of other ways to cut business costs? Here are some we could think of to help you get started.
Partner with other businesses
Pooling resources together with like-minded businesses can reduce costs in space, operations, supplies, and inventory. For instance, an artist can partner with a production company for his works and earn minus the production costs by then. Other people can do dropshipping if they want to. They can take care of the design while the partner can do the printing, packing, and shipping f products.
Take advantage of rewards, gift certificates, and discounts
If your company is viable for a discount, GC, or rewards claims, take advantage of those. Your savings might be small, but compounded over time, the end result will be huge. Maybe you have a discount at a local restaurant? Why not take your team and have a day out next company outreaches? Or, how about a discount on gas mileage for a business trip?