As a result of Covid-19, many businesses are experiencing losses. Many have already closed either temporarily or for good. You may still be able to save your small business by cutting costs. Here is a list of tips for how you can do so while still providing quality services for customers.
Cost-Cutting Measures for Your Business
1. Outsource business tasks.
Outsource as many business tasks as possible to either work alone or have only a few people working for you full-time. Outsourced services are cheaper because you only pay for what you need when you need it instead of paying monthly salaries and benefits. Outsourced services are also provided by professionals who keep themselves updated in their field, so you do not have to train an in-house team continuously. Furthermore, outsourced services have the equipment they need, so you do not have to invest in these.
2. Have a leaner workforce.
Reduce your staff to only those who are absolutely necessary. Let go of those who are not productive or whose skills can be replaced by technology or outsourcing.
3. Shift to a remote working setup.
Let your employees work from home so you can save on office space and equipment. Use cloud technology so everyone can log in from anywhere securely.
4. Do not offer unnecessary perks and benefits.
Re-evaluate the perks and benefits you offer to your employees. Are they indispensable? If not, then do away with them to save on costs.
5. Reduce travel expenses.
Encourage employees to use video conferencing instead of traveling for meetings. If travel is necessary, look for cheaper options like flying economy class.
6. Rent out part of your office space.
Downsize your working area and rent out part of your office space to other businesses. That will generate income and offset some of your costs.
7. Move to a cheaper office.
If you don’t want the hassle of renting out space, you can move to a smaller office in a cheaper area with lower rent.
8. Use shared office space.
You can also rent a desk or even just a couple of hours of meeting room time when you need it.
9. Move your business to your home.
You can save even more on overhead costs by moving your business to your home. You will also be able to claim several home office tax deductions. Identify a spot in your home, such as an unused basement or attic, and get a renovation contractor to transform it into your home office. Let your staff work from their homes, as well.
10. Have a flexible work schedule.
Be open to having a flexible work schedule to take advantage of cheaper off-peak rates for electricity, internet, and other utilities.
11. Get energy-efficient appliances and lighting fixtures.
Invest in energy-efficient appliances and lighting fixtures for your office to save on your energy bill. These are readily available in many stores and online.
12. Use recycled materials.
Use recycled materials whenever possible to save on costs. For example, print on both sides of the paper, use refillable pens, and recycle old newspapers as wrapping paper.
13. Use open-source software.
There are many quality open-source software programs available that you can use for your business. These are usually free or have a low cost, and they can do the same job as expensive commercial software.
14. Get rid of landlines.
Get rid of your office landline and have everyone use their mobile phones for business calls. If you absolutely need a landline, get a VoIP (voice over internet protocol) service that is cheaper than a traditional landline.
15. Do not overstock supplies.
Do not purchase more supplies than you need so you do not have to store them and pay for storage space. Have a minimum stock level for each item so you can reorder when necessary. Use an inventory management system to help you keep track of your stock levels.
16. Negotiate with suppliers.
Do not be afraid to negotiate with your suppliers for better terms, such as discounts or extended payment terms. If they are not willing to give you what you want, then look for other suppliers willing to provide you with a better deal.
17. Purchase in bulk.
Take advantage of discounts when you purchase items in bulk quantities. That will save you money in the long run.
18. Join a business association.
Joining a business association gives you access to bulk-purchasing discounts, saving you money on supplies and other expenses.
19. Participate in online marketplaces.
There are many online marketplaces where businesses can sell products and services at a discounted rate. That is a great way to save on costs while still providing quality products and services to your customers.
20. Cut marketing expenses.
You may get by with less marketing if you’re careful about spending your marketing budget. Try low-cost or free marketing methods first, such as social media. You can generate free publicity for your business by writing press releases and submitting them to online and offline publications. You can also hold events or sponsor local community activities to get your business name out there. Only invest in more expensive options if they are proven to be effective.
21. Do not purchase new equipment.
There is no need to purchase brand-new equipment when you can get good quality second-hand ones at a fraction of the price. Look for online auction sites or second-hand stores in your area where you can find what you need at a lower cost.
Run a Lean and Mean Business
Even if you can’t implement all these cost-cutting tips, implementing just a few of them can help your business run leaner and meaner. Every little bit helps when it comes to saving money in today’s economy. So what are you waiting for? Start putting these tips into action and see how much money your business can save!