5 Useful Tips To Cut Your Business Costs Right Down

5 Useful Tips To Cut Your Business Costs Right DownSource: Flickr

Are you overspending in your business? If you have to think about it, the answer is almost certainly yet. Trust us, if you were using all the innovative ways to save money for your company, you would know about it. It’s become easier than ever to make running a company cheap. This is true, no matter what type of business you are running. There is no excuse for having high business costs anymore. Don’t believe us? Well then fear not because we are going to prove it.

But first, it’s important to realise why cutting costs is so crucial. Let’s say your business is selling a product. It’s a product that other companies are selling, but you still get quite a good slice of the demand. This might be due to your marketing technique. Or, it could be because you have a good base of loyal customers. Whatever the reason, you’re happy with how your business is doing. Great, but your direct competition has lowered the cost of the product you’re selling. Your only option is to slash the price as well to stay competitive. However, if running your business is costing a lot, you won’t be able to. That’s the story of how you were bought out of the market, and your customers were taken.

It happens a lot so don’t presume that this is a rare occurrence. This is how the business world works. Now we’ve got your attention, let’s look at some of the interesting ways you can save some cash.

1. Cheap Transport

We’re sure at least one section of your business is related to the transportation of your goods and services. You might have a whole section of your company for logistics. Or, you might be outsourcing the issue to another business. We’ll talk more about outsourcing further down because it’s a great way to cut costs. But first we want to push another solution. Unsurprisingly, technology is the source of this one. You may have heard about the app by which you can hire a taxi. These taxis are driven and owned by private individuals, freelancers. You click the app and within minutes someone is picking you up in their car. It’s quite an innovative money making solution.

We bet you didn’t know there was a similar solution for business transportation. If you need help transporting your car or caravan, anything really, you can use the app. A driver will be over within minutes to pick up your goods and deliver it. The best part? The cost is minimal, and it’s perfectly safe. You’ll be able to get your goods where you need them to go with no trouble at all. It’s the perfect solution for any company looking to save costs.

2. Less Talking for More Service

No doubt you’ve got some form of customer service set up for your company. If they ring up, we imagine a customer is going to take the time of one of your employees. Time that you will undoubtedly be paying for, we might add. The worst part about this is that the person they’re speaking to might not even want your product or service. It could be the wrong number or someone who is just exploring the market. Then, what you’re paying the person who answered that call becomes dead money. You can’t afford that kind of needless loss in your company. To avoid this issue, there is a simple solution. You can invest in a call handling service. A call handling service could be an automatic programme. It sounds human enough, but it’s just ones and zeroes. It will direct callers where they need to go. Your employees will only get the call if they need it. You’ll be saving a fortune because you won’t have to pay people to answer those telephones.

3. Energy Saving

All this talk about energy saving can be a headache for a company owner such as yourself. We completely understand that, particularly when if you’re not saving energy, it’s frowned upon. You’re killing the planet! But have you ever considered how saving energy could be financially beneficial to your business. Don’t forget about the huge bills you’re paying on landfill charges. Or, how about all the money you waste on electricity because your business is still using outdated tech. Take a look at your annual energy bill and try telling us it wouldn’t be beneficial if you could cut down. If you start a big commitment to energy saving this year, you’ll be amazed at the outcome.

You can start small as well. You don’t have to pay the fixed cost of getting into recycling. You don’t even have to commit to putting solar panels on the roof of your business. You can begin by switching to energy saving lightbulbs in this office. You’ll be amazed by how much you have saved by making this seemingly insignificant change.

Of course, if you want to think bigger you can consider switching your energy providers. Providers are always offering different rates. So, when your contract runs out it might be wise to consider making a change.

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Source: Pixabay

4. Accounting Excellence

Do you know how businesses lose the most amount of money? It’s quite simple really. They don’t watch their costs and don’t manage their funds correctly. Business owners often do try to save on money. But they save in the worst way possible, by not hiring an accountant. If you don’t have anyone for accounting, you’ll be losing a lot of money in weird and wonderful areas throughout the year. An accountant can also help you with tax, so that’s always an advantage.

5. Outsourcing

Finally, we promised we would mention outsourcing. But, don’t immediately jump to this as your go-to solution. Outsourcing can certainly be an effective way of cutting costs. However, it’s not always necessary and is more beneficial to certain businesses. For instance, if you are in production you might find you can reduce costs significantly by outsourcing a job to another company. You will save on labour and tech, so it is often worth considering.