Clever Ways to Reduce Business Costs
May 23, 2018 by Susan Brooks
In business, the money that comes in will ideally overshadow the money that goes out –money in less money out equals the profit. So if you can increase income and reduce costs, or better yet do both, then the profits will increase and the bottom line will be a much improved read! We’ll save income for another day and focus here instead on costs and moreover clever ways to reduce business costs. Read on for more:
Your suppliers cost money, and therefore there are potential savings to be made. Remember, your clients will always ask for discounts, so when you’re a client you should do the same! Savings can be made in a wide range of areas, such as your pallet delivery service for example.
Space costs money, and therefore should be fully utilised and none of it wasted. You also need to ensure that other resources are properly utilised – consider recycling and reducing material costs. The biggest cost when it comes to production is of course your workforce. Whilst cutting costs doesn’t necessarily mean a cull of employees, you might want to think about automation or improving efficiencies and productivity. Before you make any decisions, ensure that you properly review and measure the current levels – that way you’ll be able to focus on the key areas that need attention.
Most businesses run through finance, and that of course costs money. If you can make savings in terms of loans, rent or supplies – such as the exampled pallet delivery service – then these will all impact positively on your business.
The market place is constantly changing, and so are marketing opportunities. You may be able to diversify away from more expensive and traditional means of marketing in favour of a more modern, and cost effective one. Done in house this will ensure further savings, but it should always be noted that ineffective marketing can impact heavily on income – and that’s not desirable.
Savings in time, mean savings in money – so efficiencies are key and wasted time is the enemy. Diaries are crucial, but more important is proper diary management.
Technology can be a great means of saving costs, but only if it comes with proper implementation and training, and moreover is actually needed. Technology for technology’s sake is often costly and counterproductive – think of document storage and software as a service just as readily as large levels of automation.
Like any plan, the desire to reduce business costs needs focus. You need to properly focus on your business and the areas to change. Do not consider change for the sake of change, rather identify areas that need attention and work on them one at a time – then review and monitor the changes to see just how they work.
Your business matters, and controlling the costs can be the key to making it a success. These key areas should be reviewed and applied as appropriate. With focus and attention they’ll make a big difference to your bottom line – good luck.