The start of a fresh year is the perfect opportunity to take a look at your business and assess the ways in which you can improve your bottom line. Cutting costs can yield benefits, but it’s important to make changes that don’t end up stifling growth or affecting your ability to bring in revenue. Let the notion of productivity transfer – achieving the same results with alternative resources – guide your steps.
- Pool your resources. Consult with other small businesses in your area to determine which products you all need to run your businesses and commit to working with one supplier exclusively for a period of time in exchange for a discount. Your supplier will be thrilled to have guaranteed revenue, and you’ll see real savings.
- Hire contractors. If you’re paying full-time staff to sit around and wait for work, then you’re not using your payroll dollars as effectively as you could be. Find contractors, pay them a higher hourly rate for their expertise, and you and your staff will be more efficient.
- Free advertising. Ever see billboards that advertise for a business that’s closed up shop? Call the phone company and have the phone number redirected to you. After you inform the callers that you’re ready to supply the goods or services to satisfy their needs, you have instant prospects! Why pay for advertising when you can get it for free?
- Cut phone costs. So many businesses bleed enormous sums of money in their phone plans. Check out the free and nearly free options that you have. Nextiva is one example that lets you actually improve the number and quality of services you enjoy, while slashing costs at the same time.
- Assess your office space. Look at what you pay to rent your office space and take a hard look at your options. If your staff can operate from home, you can eliminate your office rent altogether. If your business requires a physical office, look around for other businesses that may be renting more space than they need and see if they’re willing to share some space for a reduced cost. Also, keep in mind that landlords with vacant space may be willing to renegotiate rent if they’re anxious about keeping you as a tenant.
- Train your own talent. Experienced staff is expensive, no two ways about it. If you have positions that you can fill with inexperienced folks with great potential, you can train your staff in-house. Accepting applications from inexperienced folks also lets you take a look at interns and people with disabilities – folks who might have trouble gaining experience, but can be gems once they’re properly trained. Think outside your typical talent pool.
- Get your staff involved. Sit down with your employees and lay it out for them: explain that you want their expertise and suggestions for how to cut costs and make the company healthier. You’ll get ideas that would never have occurred to you, and your staff – rather than worrying about their job security – feels like a vital part of a team.
The overall measure of success for cost cutting measures is the bottom line, and it’s important to take the time to ensure that you’re making changes that result in a leaner, healthier, and more efficient company.Tags: Accounting, Advertising, Finance, Mondays with Mike, Money Management