Making money is the goal of all businesses, but cutting costs can do just as much for improving your bottom line. Although investing in your company’s future is essential, so too is building cost-saving habits. Fortunately, there are ways to cut costs without having to reduce your efficiency or settle for less. Here are a few tips to consider.
Consider Telecommuting
Some jobs must be done in an office. However, technology is allowing more and more employees to spend at least part of their work time at home. Telecommuting lets you conserve your valuable office space, and it reduces electricity costs used by employees in the office. Investing in quality communication infrastructure frees employees to work wherever they’re most productive, allowing you to save time and money by cutting back on transportation costs while improving employee satisfaction.
Cut Back on Paper
Businesses are often slow to adjust to new technology. Spend some time on occasion reexamining your day-to-day workflow to find out if paper products are really necessary. In particular, look at your archiving process: Do you need to keep paper archives of certain documents, or will online backups do the job sufficiently? Feel free to ask employees for feedback as their insight might help you uncover options to save on paper-related expenses.
Buy Used Equipment
Some business expenses are simply unavoidable. Even if you’re aiming for a paper-free office, being able to print documents is still important. With this in mind, try to find used commercial printers for sale for your business. Check out surplus sources for other types of equipment. Consider picking up items from previous years as retailers and other outlets regularly clear space for new products. Used and older equipment often provide substantial savings.
Outsource Tasks
In some cases, outsourcing solutions can allow you to reserve your employee time for more important tasks. Thanks to the internet, resources for outsourcing IT and other crucial aspects of modern business have grown dramatically over the years. Markets of scale let these companies offer services at excellent rates. Furthermore, smaller businesses can often avoid having to hire full-time employees for certain roles. Outsourcing some of your accounting, for example, can be a wonderful option if you don’t have enough work to justify a new position. Outsourcing also lets you better project future costs, making it easier to plan for the future.
Focus on Negotiation
Negotiating prices with suppliers and vendors can let you save substantially, so make sure it’s a part of your processes. If you don’t feel comfortable negotiating, find out if an employee has negotiation experience. Furthermore, note what leverage you have in particular scenarios. If you’re looking for a multiyear contract for certain services, you can use this leverage to get better rates from suppliers. Make sure to consider multiple suppliers or vendors as well, and try to get them to compete on price or performance.
The bottom line drives your business. While focusing on revenue is critical, the money you save can help ensure your business is sustainable. Set aside some scheduled time to focus on your expenditures, and make sure to involve as many people as possible in the process. You might be surprised at what your employees uncover.