Business owners always look for the way to increase profitability. One way to do it is to cut down business expenses. This is not always an easy job to do, but with proper suggestions, the costs can reduce significantly. It is important to keep track of every expense that is made and use every opportunity to lower it.
Use Cloud sourcing
Hiring a new employee can cost up to $4000. Moreover, his or her training, insurance, vacation time, and sick leave requires additional expenses. Therefore, many companies choose cloudsourcing, which means that an employer can hire qualified professionals whose work will cost much less, than a traditional employee’s job would. Potential employees put their resume on freelance sites so that business owners can find them easily and hire them. This is a more practical way to hire a website designer, or a write that you do not need to work full time. The option of cloudsourcing will substantially reduce the expenses.
Instead of using temporary workers, which are more expensive, hire an intern or a few. Business trade schools and colleges are filled with students who are eager to start their internship and learn more about their future profession. More often than not, students get school credit for the job they have done, and they will work for quite a small fee, or maybe if you are lucky, they may not want any money from you.
Use the Discount
Small business owners can benefit from discounts, if they only ask the retailers to offer them one. Feel free to ask for a discount, because the retailer will not offer it on his own. It does not mean you will get the chance to buy a pack of highlighters for $0.50, but there is definitely a better deal for you, if you need to buy a new equipment for the new bigger office.
Avoid Shopping in Bulk
Even though buying a pack of thousand highlighters will cost less than buying them individually, you should think whether you would actually use all of them or not. It is common for companies to buy office supplies in bulk, because the owners think it is less expensive to shop that way. However, most of the highlighters tend to dry out due to improper maintenance. You forget to put the cap back on and the half of a highlighter is wasted.
Prevent any penalties
Hundreds or even thousands of dollars are sometimes spent on business credit cards, credit card processing fees, and late payments on loans. Owners usually forget to pay them on time, due to many obligations they have at the company. These unnecessary expenses can be cut down by setting a simple reminder, on your smartphone, or computer. Furthermore, you can even pay the bill online and save the time, you would otherwise spend in traffic.
Energy-efficient lightening will save the great amount of energy. Moreover, recycling is highly recommended in every business so use every chance you get to go green. If you wish to cut down on your printing costs try using water based screen printing inks. Not only do they cost less, but also they are environmentally friendly, and do not contain any toxic chemicals. Water based inks do not contain PVC or phthalates and do not require solvents to clean the screens down. They can be cleaned perfectly with water.
Change the Current Advertising into Something New
It is not that easy to compete with successful companies and advertise your own. Nevertheless, digital media made it possible for companies to find their place in the sun, without spending tons of money on marketing. Opening a Twitter or a Facebook business account is completely free of cost, and this is the perfect way to get your message out there. Therefore, instead of giving tons of money on printing ads, paying TV or radio commercials turn to social media and save the money in no time.
Avoid cash outlays by swapping products or services with another company. You may be uncomfortable to do it yourself, so you can choose to hire a commissioned barter broker to do it for you. There are also barter sites that can help you keep in touch with other business owners. You can offer certain services that your company provides, for the service of another company. It is a great money saver.
Lower expenses provide higher income. These suggestions will help you cut down your costs, and save the money for upgrading your business. Furthermore, you could use that money as a bonus for your employees, to motivate them to do their job even better than before. Consider some of these ideas and I am sure they will help you come up with some of your own, which will additionally save your money.