As a business owner, you know that keeping up with the constant changes to run a business can be financially challenging. The goal is to control costs while maximizing profits. Although today’s economy is recovering, it’s still unstable. Discover five ways business owners can cut costs and save money.
Optimize Your Office Space
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Take some time to analyze your workspace and evaluate whether you’re using that space efficiently. Can any area be used for dual purposes? For example, can the break room also be used to hold meetings? Equipment such as copiers waste space. If you have a storage closet that can fit the machine, use that space.
Another idea that can save you money is moving to an open floor plan design. Open floor plans not only promote collaboration, but the shared desk and worktable model also reduce square footage required which, in turn, reduces costs.
Hiring contractors can quickly help you get the job done, and you can still save money. Many contractors you hire may purchase at least some equipment, while others can save money by renting heavy-duty construction equipment when the time arrives for your company to expand and add space.
Embrace Virtual Offices
While an open floor plan saves you money, don’t forget about virtual offices and telecommuting. Having a brick-and-mortar space can be expensive, but virtual offices can significantly cut overhead. With no space to lease or buy, you also won’t need to pay for furniture to buy or additional items such as liability insurance coverage.
If your business model doesn’t support a virtual office, you can still minimize travel expenses by having virtual meetings.
Reduce Marketing Expenses
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Paid advertising is the cornerstone of your business, but you don’t want to cut what’s working. The good news is that you can find cheaper alternatives to reduce marketing expenses. You can build a customer email list and set up a referral program that offers incentives. Participate in business fairs and other networking events. These opportunities offer a great way to meet clients, and people are more likely to hire someone from a business with a familiar face.
Take advantage of advertising using social media networks such as Facebook and Twitter. Facebook is a cost-efficient way to advertise online, and creating a Facebook ad is easy.
Maximize Employee Potential
Analyze and evaluate employee skills and experience, and delegate responsibilities to those most qualified. For example, if you have an employee who is proficient in computer programming as a hobby, then use the individual’s skills. You could also invest in training courses to keep employees up-to-date with computer programming skills. When you do, you can avoid paying an outside business to manage or troubleshoot your software.
Consider Vendor Hunting to Cut Supply Costs
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Save money on office supplies using nontraditional vendors such as Walmart, Target, and Overstock.com. Nontraditional vendors can often give you a better deal than traditional office supply vendors. You’ll have to do a little price matching, but in the end, going this route could save you money.
Cutting costs doesn’t mean sacrificing your business and is easy if done correctly. Develop a plan, execute it, and ask for help when you need it.