You know there are two ways to increase the bottom line in your company’s profits.
• Boost the amount of money coming into the business.
• Reduce the amount of money going out.
This article focuses on the latter. But how do you cut costs without cutting back on services or the quality of your products?
Here are a few cost reduction tips that can help you control cash flow without jeopardizing the effectiveness of your company:
Use less paper
Have an up to date blog or webpage instead of expensive brochures.
Use email whenever possible for in-house memos as well as correspondence to other businesses.
Be energy efficient
Turn off lights when you leave a room.
Set printers and copiers to go to sleep mode when not in use.
Be sure you turn everything off, including computers, when you leave the office at night.
Unplug things that aren’t used a lot such as shredders or coffee pots.
Have an energy audit and find out other ways you can reduce electric and gas bills.
Buy used office furniture
Consider outsourcing – Instead of hiring full time employees try outsourcing on a per need basis. This can also free your time so you can concentrate on sales and marketing.
Writing articles or ads
Technical aspects of web design
Hire temps for data entry and filing
Compare costs every year – At least once a year do a comparison on what you’re paying for the following services and see if you can find a cheaper option.
Give one Person Purchasing Power – Instead of everyone ordering supplies, let one person be in charge of all the ordering. This allows your company to benefit from bulk purchases and comparison shopping.
Check into tax advantages – There are many government programs that give you tax breaks when you hire disabled individuals or locate in an area with a depressed economy.
Set up an Internship program – Talk to local colleges and see if you can train an intern in your industry. These are usually no pay or low pay positions.
Cooperative Advertising – If you want to do local print advertisements, look into sharing ad space with other complementing businesses.
Rent out extra office space – If you have an office you’re not using, sub-let it to a small business owner.
Encourage Employees to Suggest Cost Cutting Ideas – Offer a gift card or an extra day off to the employee who comes up with the best cost saving tip of the year.
Hopefully these ideas will help you and your employees brainstorm your own cost cutting plans. With some planning and commitment it is possible to reduce costs in your business without diminishing the quality of your services.