For small-scale business owners, it is crucial to make an effort to cut costs. Overhead and insufficient money flow are the most important reason that businesses fail. In these times, it is crucial to take every possible thing to reduce expenses. Here are 3 simple methods to save money in your company:
Outsource everything you can
This is the most money-saving tip I have ever heard. It could be anything from outsourcing work overseas to outsourcing local jobs , and cutting or eliminating the amount of payroll. There are numerous jobs that could be outsourced locally, which many small-scale business owners can bring to their own premises. An example is printing. It might seem like you are saving cash by printing it at home, but it is important to consider the costs. Printing costs more expensive than the ink or paper. What number of copies can your printer print before it requires regular maintenance or, even more importantly, repaired? Printing companies and office supplies stores are equipped with large machines that produce prints (even color) for a very low cost. Sometimes, they’ll increase their margins and offer it at a lower cost than I or you could.
An alternative is to send selected jobs to overseas. Our web designer was located in the Philippines and we communicated via emails and Skype. He was excellent and completed all the design work and then got the site running. After that, we had a quick meeting where he demonstrated how to navigate and update the website. He was more expensive than those I interviewed, however, he was lower than $8.00 each hour. I had another employee in the Philippines who wrote a few articles for me along with some research and marketing via email. The danger here is that if you are paying per hour, you need to keep an check on them since the hours could begin adding up before you see the results you desire.
Save money on utility bills
The cost of phones and internet can get expensive. I’ve found ways to cut costs in these methods. One is to bargain with the sales representative. Do you realize that you could do this? Don’t pay for the amount they are asking for, but if are persistent enough, you could find some amazing bargains. If you are offered a fantastic bargain over the phone, inform the agent that you’re required to discuss the offer with your friend and then call back. Take this opportunity to contact another company and explain what you received. Perhaps they will beat it.
Internet phone is an alternative. We used it for many years costing $15 for the two lines. We were forced to walk away from it as the box was constantly going out and required to be reset to put us without phone. If there is a power outage or internet, you will also lose your phone. We’ve tried Vonage as well as Phone Power but there are numerous providers. I suggest you do an Google search for providers of internet-based phone services and then see what results you get and also read reviews because there’s an array of differences in terms of quality.
Reduce office space costs
I’m sure that most of you don’t have an office, so you don’t have to be concerned about this. Our office is extremely affordable for what we have, and it’s an easy choice for us. The office space can make your appearance more professional and provides a wonderful space to get together with clients. It’s also beneficial to leave the home to keep your professional and personal lives apart and be in a position to get presents for the wife brought at the workplace. If an office is something that seems like a good idea for you, this could be the perfect time to sign a long-term lease. It is believed that the number of office spaces will begin to decrease which will mean that rates will rise and landlords are less likely to to sign long-term leases. It’s also a great opportunity to negotiate deals on lease space. Be patient, take a look at the offices and then strike for a tough bargain. If you have a signed lease , it is always worth making a contact to the landlord to determine if you could get an a bit better deal by prolonging the lease.
I’m not trying to degrade an office at home. Actually, it’s the reverse. I worked from home for many years and it performed great for me. I could save on leases for offices and internet. In addition, I saved on gasoline. (Although there is a chance that I have paid more for Starbucks because that was the place I would go to meet with clients.) The idea is that you could save money through bringing the office to your home , and receive some fantastic tax breaks as a result of it. I’m sure this will be obvious but if you are working at home , it is crucial to have a separate space with an entrance.