Business Cost Reduction Tips That Could save You Thousands
by Abdul Aziz Mondal Small Business Published on: 09 June 2018 Last Updated on: 26 September 2024
Running a business is expensive. Sometimes it feels like a chore to just keep the lights on. We get it.
We can’t lower your utility bill, but we can suggest ways cheap and impactful business cost reduction. Most of them have to do with analyzing current efficiency in one way or another.
Learn the ways we can save you money below.
Sell Your Scraps
Do you find yourself with scraps of material that end up getting thrown away?
What about cardboard boxes and fabric remnants? See if you can sell them (cheap!) to your local kid’s art center or church.
Non-profits that work with kids have to buy supplies anyways, so you might as well help them out. Any money you make on what you were throwing away or recycling is a profit!
Ask your local YMCA, Boys and Girls Club, big daycare centers, Preschools, or art studios.
Lease Out Extra Space :
Do you have a functioning room in your office that you never use? A desk that sits empty and gathers dust?
There’s a freelancer out there who would pay you monthly to rent that space. People who work from home get tired of staying cooped up in the house.
Put out an add on your local Facebook business page, craigslist, or ask employees to spread the word. You can specify that they have to use the space during current business hours if you don’t want to give them a key.
Before you do this, check your lease. If you’re only making small change off this, it shouldn’t be a problem, but it’s better to be safe than sorry!
Invest in Referral Programs :
Offering current customers incentives to bring you new ones is a great low-cost option.
Keep in mind that most referral programs offer something for the original customer. It doesn’t have to be something big, even a 15% coupon code will work.
Once you get this built up, the fifteen percent coupon code will seem like nothing against cutting marketing costs.
Network More
Facebook ads are great, yes. But face-to-face advertising is better. How can your business get known in the community and get involved?
Can you let a local meeting group use your boardroom for once-a-week meetings? Hand out promotional items at local sporting events?
The cost of sponsoring something like a local high school team easily pays off. If you donate a small hundred amount, most schools will put your logo on their programs/field.
That puts your business in front of parents for a whole season, for the cost of one ad campaign.
Hire an Intern :
If you have kids or know people graduating out of high school/college, you know the hunt for experience is real.
Many colleges or high school students will work for as little as a recommendation letter. What tasks can you give to someone new that’ll make your current staff more efficient?
Appointment reminders? Follow-up emails? Copying? An intern can do that!
Taking these tasks off your skilled employee’s plates makes them more efficient. You’ll pay them to do less busy work and more of what you hired them to do.
Set Time Limits
This is a delicate line since you don’t want your employees to rush through a task to meet a limit. If your company has regular, monotonous tasks take toll of how long they take.
Take the average amount of time and ask your employees to beat it, while maintaining quality work. This will motivate them to work without goofing off.
Set Video Meetings :
Is there a way you can have meetings from your desks to reduce travel time? There is plenty of inexpensive meeting technology you can use from your office.
Instead of having people from other branches/offices convene in one place, do a group video call.
You’ll save the driving time, the chatting time, and it’ll seem easier for your employees to fit it in their day.
Encourage Healthy Habits :
Yes, giving employees discounts for gym memberships or buying more expensive office furniture costs more in the beginning.
But having a sick or out-of-work employee costs more. Many companies are biting the bullet and offering corporate wellness programs.
The ones who started programs as little as a year ago are already seeing the benefits.
Even something like buying employees reusable water bottles can help. People who drink water are healthier and take less sick days.
You’ll also cut down on your bottled water costs if you had any. It’s a win-win.
Invest in Learning Styles :
Everyone has a way that they work and learn best. Some people like to do things, some like to listen, some like to read.
How can you help your employees integrate that into their workspace? Feeling smarter and working better will make them more willing to do their work.
People like doing what they’re good at, so invest in making them feel that way. They’ll waste less time in the long run and you won’t be paying them to scroll through Facebook.
Go Electric :
You might not be able to afford Tesla’s electric semi-trucks, but you can afford a company Prius! It’ll cut your gas costs and your carbon footprint.
Don’t need a company car? There is an electric utility vehicle for sale perfect for your in-warehouse transporting. You’ll save time getting from place to place!
Business Cost Reduction: The Bottom Line :
We’ve never seen a business that couldn’t save money from examining current business practices. That can mean investing in your employees as people or hiring an intern.
Sometimes, business cost reduction is as easy as taking five minutes to see where you can be more efficient.
We hope you liked these tips and that they save you money in the future. That’s what we’re all about at Real Wealth Business.
See what other advice we have to make your business better here.
Read Also :
Related
