Whether you run a bricks and mortar store, an e-commerce website or provide an online service, there’s no avoiding the fact that running a business costs money. Every start-up has its own set of expenses; some more than others. Whilst it’s impossible to fully eliminate your business costs, there are several ways in which you can significantly reduce the amount that you spend on running your company. We’ve put together some top tips to help you cut the cost of running your business.
When it comes to getting projects done, it’s often much easier and cheaper to outsource the work to contractors and freelancers, rather than taking on employees. For short-term jobs, it’s far more cost-effective to hire a freelancer than paying a full-time salary and benefits to an employee who may not always be needed after the project is completed. Today, freelancing has become more of a viable career option and there is an ever-increasing number of people ready to take on your work remotely on a pay-per-project basis. Check out overheadwatch.com for more tips on cutting labor costs.
Reduce Paper Use
Across the country, businesses in every industry are wasting more paper than they need. When you think about everything that you print on a daily basis, you may be surprised to discover the amount of paper that you are using throughout the year. In addition to being more cost-effective, using digital methods of communication more often, such as emailing whenever possible and only printing when absolutely necessary, is also far more environmentally friendly and will help you significantly reduce your company’s carbon footprint.
Pay Invoices Early
When ordering items from your suppliers, paying off invoices as early as possible may allow you to negotiate a discount. In order to encourage their clients to pay their invoice balance as soon as possible, many suppliers will offer a discounted rate if you are able to make the payment within a certain time-frame after receiving the invoice. In addition to being a way to make savings that will add up over time, paying invoices off as early as possible will also help you build stronger relationships with your suppliers, making it easier for you to negotiate deals and discounts in the future.
Allow Employees to Telecommute
If your business hires employees, then allowing them to work from home rather than come into the office every day, can be a great way to save money running your business. In addition to the fact that employees who work from home will save you money when it comes to office supplies and utilities, you will also find that your workforce will be more satisfied with their jobs and more productive with their work. Employees who telecommute tend to have greater career autonomy, therefore, they usually report higher career satisfaction and greater loyalty to their employers.
Running a business doesn’t always come cheap, but reducing costs will help you to improve your profit margin and experience greater business success. If you’d like to add to this list, we’d love to hear from you in the comments.