Running a small business can be tough. Employees, suppliers, printing, customers, renovations, insurance; with your mind on so many things you can lose track of simple ways to reduce costs. Every once in a while you should, stop and reexamine what you have been doing. Trying to find new ways or perhaps updating old ways to reduce costs can really increase your bottom line.
Of course, there are many things you could be doing to reduce costs. These 5 ways will get you started in the right direction and perhaps to a better profit margin.
1. Bulk buying printing isn't necessarily cheaper
We all know that buying in bulk can lower the price per item. It may appear you are saving, but often the supplies get wasted. How many times have you bought, color printing for instance, and left it in the back room to collect dust, or worse bought too much only to change your products, services or policies just months later? Now you have to throw all that printing out; what a waste. Find a supplier can that give you a low price for smaller quantities so you'll never be stuck in that wasteful scenario again.
2. Collective purchasing
Many small businesses need the same basic supplies as their neighbors. If you can collaborate, you and your peers can reduce costs on many supplies that you all use regularly. Saving money with a little cooperation can benefit everyone involved.
3. Review and renegotiate all contracts annually
So many business make the mistake of thinking long terms contracts can lower you costs. Things like insurance, cable/internet, suppliers should be only on annual contracts. Multi-year contracts tend to favor the supplier and not the buyer. Renegotiating contracts can be tedious to go through every year but well worth it if you can save money in the long run
4. Start internships
Sometimes when your work gets back-loaded, or you have seasonal requirements interns can release some steam from the building pressure. Check local schools and colleges for temp workers that only need a job for a short time. Sites like Internmatch can help you find interns that will match up well with your industry.
5. Reduce Energy Costs
Easier said than done, but the amount of energy wasted in just one year runs into the billions of dollars. Any way you can reduce this will be a boost to your margin. The small business administration has some tips you can follow to reduce wastage. It covers things from air conditioning/heating, lighting, vehicles, office equipment and more. Also, you may be able to price shop. Many states have freed consumers to buy their power from a company other than the company that owns the power lines. You still have to pay the local company for delivery, but you can buy electricity from another company. Check to see if your state allows energy competition.
Of course, we could probably write a list of 100 ways to reduce costs, but these 5 ways are a good start. Stay tuned to this blog for more articles on ways to reduce costs.
Of course, there are many things you could be doing to reduce costs. These 5 ways will get you started in the right direction and perhaps to a better profit margin.
1. Bulk buying printing isn't necessarily cheaper
We all know that buying in bulk can lower the price per item. It may appear you are saving, but often the supplies get wasted. How many times have you bought, color printing for instance, and left it in the back room to collect dust, or worse bought too much only to change your products, services or policies just months later? Now you have to throw all that printing out; what a waste. Find a supplier can that give you a low price for smaller quantities so you'll never be stuck in that wasteful scenario again.
2. Collective purchasing
Many small businesses need the same basic supplies as their neighbors. If you can collaborate, you and your peers can reduce costs on many supplies that you all use regularly. Saving money with a little cooperation can benefit everyone involved.
3. Review and renegotiate all contracts annually
So many business make the mistake of thinking long terms contracts can lower you costs. Things like insurance, cable/internet, suppliers should be only on annual contracts. Multi-year contracts tend to favor the supplier and not the buyer. Renegotiating contracts can be tedious to go through every year but well worth it if you can save money in the long run
4. Start internships
Sometimes when your work gets back-loaded, or you have seasonal requirements interns can release some steam from the building pressure. Check local schools and colleges for temp workers that only need a job for a short time. Sites like Internmatch can help you find interns that will match up well with your industry.
5. Reduce Energy Costs
Easier said than done, but the amount of energy wasted in just one year runs into the billions of dollars. Any way you can reduce this will be a boost to your margin. The small business administration has some tips you can follow to reduce wastage. It covers things from air conditioning/heating, lighting, vehicles, office equipment and more. Also, you may be able to price shop. Many states have freed consumers to buy their power from a company other than the company that owns the power lines. You still have to pay the local company for delivery, but you can buy electricity from another company. Check to see if your state allows energy competition.
Of course, we could probably write a list of 100 ways to reduce costs, but these 5 ways are a good start. Stay tuned to this blog for more articles on ways to reduce costs.
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