Reducing outgoings can dramatically increase a business’s profit margins, however, many small businesses still struggle with cash flow. As a result, growth is often stifled and some businesses even start operating at a loss.
Saving money can be difficult, especially if you are operating with a limited budget and thus lack the opportunity to buy in bulk.
Featured below are 5 tops tips to help business owners reduce their overheads without impacting the customer experience.
1. Exercise Your Negotiating Power
Negotiating with your suppliers, including wholesalers, manufacturers, distributors and service providers, can be an easy way to start reducing business costs today. Whenever you place an order, always make sure you ask about discounts. Suppliers want to retain their regular customer base, so if you place many orders each month, many will be prepared to offer you a discount. Don’t be afraid to mention your supplier’s competitors when trying to negotiate discounts.
2. Stop Buying New Furniture and Office Equipment
If your business has a busy HQ office, the chances of any new furniture and equipment placed in that environment remaining in tip top condition for more than a few days are low. By purchasing functional used furniture and office equipment, your business can potentially save thousands of dollars each year without even noticing any chances. Of course, you should always keep client areas well-furnished to avoid giving the wrong impression about your company’s professionalism to potential customers.
3. Go Green
Opting for environmentally friendly products, like low energy light bulbs, recyclable receipt paper, and energy-efficient heaters, will not only reduce your business’s monthly utility bills but will also be a very good PR move. To reduce paper waste, always use both sides of an A4 sheet when printing. In addition, make sure that all electrical office equipment is programmed go into standby mode after a short interval of inactivity. Change your supplier with energy comparison with Simply Switch to save.
4. Switch to Cloud Computing
You can avoid the cost of expensive server equipment, data storage devices and office software by switching to cloud-based computing solutions. Affordable cloud-based software is available for presentations, bookkeeping, word processing and even video editing. Your business can save a small fortune on hardware, maintenance costs, software upgrades and technical support costs by switching to a cloud-based computing solution.
5. Collaborate with Local Sponsors
Many small businesses depend on local customers for their survival. By hosting events for the local community in collaboration with sponsors, you can engage with large numbers of your target audience without spending very much money. Collaborating is also the key to expanding your customer base, as you can leverage the target markets of other businesses.