An Essential Guide To Cutting Business Costs In 2016
By Business Desk
Wednesday, September 21, 2016.
Making your business a household name isn’t something that just happens overnight. Taking your company from a startup to an international brand is something that takes time. As well as lots of hard work, and discipline. If you were to speak to one of the most successful business owners in the world and ask them what their secret is, they would say money management. Well, most of them would, anyway.
It’s a well-known fact that half of all startups fail in the first 12 months of launching. However, what many people don’t know is why this is. Most people presume it’s due to a lack of motivation and hard work. But actually that’s not the case, the most common reason that businesses fail is because of money, or a lack of it. The fact is no matter how amazing what you offer is, if you lack funds, you have little chance of being successful. This means that effective money management is crucial from the outset. As is knowing how to keep costs as low as possible.
To cut business costs and ensure that your company stays on budget, this advice should help.
Cut the cost of your services
Running a business comes with a lot of costs. To reduce your spending, look at the monthly services that you’re using and find ways to reduce the price of them. This means looking at the monthly costs of your internet, phone - landline and mobile, and other bills, to see if there’s any way to reduce them. Take your landline bill, for instance. Many business owners choose to use VoIP solutions instead of traditional landlines. This is because VoIP phones run via the internet. This means that you don’t necessarily need a landline connection to use them. Or, take your power bill, for example. Contact your provider to ask if you’re on the most cost-effective plan. If the answer is yes, ask if there are any other ways you can save money on your energy. Obviously, using less energy is one option. However, it’s not something that’s easy when you’re running a business.
Don’t hire, outsource instead
If you’ve got a task that needs completing, such as new content for your company website, don’t hire a full-time member of staff. Instead, choose to outsource. Outsourcing is a much cheaper method of getting tasks completed. This is because you only have to pay for the hours worked. Instead of having to pay for a new team member. Plus, by choosing to outsource, you can compare prices and skills, and choose the freelancer who is the best fit for the job. You’ll save money and will get a better quality of work - talk about killing two birds with one stone.
In 2016, a lot of consumers are pro green living. This means that many people will no longer use businesses that aren’t seen as being eco-friendly. By going paperless wherever possible and using email instead of traditional mail, you will not only save paper and printing costs. You will also be more popular with certain consumers, growing your customer base. Going paperless is much easier and more cost-effective than you would think. Just think, you won’t have to pay for paper, envelopes, printing costs, shipping costs, or any other paper-related costs. It may take time to adapt to being a paperless business, but if you want to save money, it’s something that’s worth doing.
Keeping business running costs low is crucial for success. There are plenty of ways you can reduce your business-related spending; these are just a few suggestions to get you started.