ONE of the main concerns for small businesses is how to save cost.
Cost cutting can make the difference between success and failure for a business, particularly during tough, economic times.
A company needs to instil a culture of frugality and awareness to make a big difference in waste. If enough employees and managers can be trained to think this way, it will eventually become second nature.
Below are some basic tips on how to cut cost and ensure your business can operate more affordably.
1. Save power and money by turning off all lights and equipment that aren't being used. While this idea seems self-evident, many people and companies ignore it, leaving lights and computers on all night long. All electronic and electrical items can be switched off when not in use to save electricity and money.
2. Go green and cut down on power use and waste. A lot of initiatives used by businesses to go green can also be used to save money. Paper saving is one of these aspects. The office can save paper by printing out only necessary documents, using smaller font-size to help utilise lesser paper. Printing on both sides and sending the paper to recycle helps the environment and your finances.
3. Barter. Find other businesses in your area and barter your services. Bartering allows you to trade services with other business owners, which can save you money because you don't need to hire independent contractors. You also can set up an agreement with other business to refer clients to one another.
4. Buy used furniture. Buying used furniture and office equipment allows you to save money. New office furniture can get expensive, but you may find good deals shopping at a resale shop. To confirm you are getting quality furniture, check the furniture in person before you buy it.
5. Eliminate small expenses. Expenses that are considered small - like styrofoam cups for drinking coffee or water, and disposable plates used in the cafeteria can become substantial in the long run. To avoid this, replace all styrofoam with proper mugs, plates, and cutlery so they can be re-used.
6. Hire temp employees or contractors. Administrative costs can add up to major expenses for small business. Instead of hiring full-time, permanent employees, hire temporary, part-time employees or independent contractors. In most cases, you are not required to provide benefits for part-time employees or independent contractors.
7. Use a virtual office. Virtual offices are increasingly popular. A virtual office allows a business owner to possess a physical address and have access to conference rooms without paying the full price of renting commercial space. Many virtual offices provide a receptionist and use of office equipment in the rental price. You don't get the full benefits of renting your own office, but you can save a significant amount of money if you don't need to use office space often.
8. Share an office. If renting a virtual office is not an option, save your business money by sharing an office space with another tenant. Choosing an office space roommate who shares similar business interests may make the experience easier. If you use your office only sparingly, structure your rental payment accordingly.
Compiled by 1Klassifieds team
Credit to NSTP and Google Images
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