Running a business is a great job for most people who start
them. It gives you the freedom to decide when or where you are going to work,
which industry you will be involved in, and the opportunity to increase your
income by a lot more than you might if working in a standard full-time job.
However, on the downside, running a business often comes with a lot of costs
involved. You are responsible for paying out a huge number of expenses that you
may have never considered before you started running a company of your own.
While some expenses, like paying the rent or mortgage on
your business premises and buying equipment for your employees to use to do
their jobs are impossible to get away from, the good news is that there are
lots of things you can do to be savvy about it and cut your business costs.
Repair, Don't Replace
In the case of an equipment breakdown, this can be quite an
expensive situation for lots of businesses. If a piece of equipment that is
integral to the company breaks down, then you'll need to rectify this situation
in order for business to continue running as normal. However, before you rush
out to replace the faulty equipment, it is worth considering if repairing it
will be cheaper. You can find parts available for machinery and equipment such as these material handling equipment parts. Ultimately, this might be a cheaper option compared to buying a new,
costly piece of equipment such as a forklift.
Rent in a Cheaper Area
If you are renting premises to do business from such as an
office, then looking for a cheaper area can be a great way to keep costs down.
While every business owner likes the idea of the swanky office in the city
center, the fact is that these are often some of the most expensive to rent.
Instead, it can be worth going for an office in a cheaper area that is less
in-demand to seriously cut your monthly expenses. If you like the idea of
having an address in a desirable part of town, you can always use a virtual
address for communications.
Work from Home
If you are hiring employees to work for your business, then
allowing them to work from home some or all of the time can be an ideal way to keep costs down
while improving employee satisfaction and workplace morale at the same time.
Over the past few years, it has been proven that working from home is a model
that works well for both employees and employers. Employees often prefer it as
it gives them a more flexible approach to work and the chance to avoid the
commute. For employers, it means that there are less expenses to pay at the
business premises as employees are not there every day using the utilities.
Shop Second Hand
Second hand can often be as good as new when it comes to
buying the things that you need for your business. If you are just setting up,
then there are lots of second-hand options to consider, especially when it
comes to office furniture. Try and find businesses that are closing down or
relocating and might be selling off some of their old desks, chairs, and other
items on the cheap for a quick sale and a great bargain.
Design Your Own Website
While there's a lot of debate over whether it's a good idea
to do things like designing your own website yourself instead of paying a
professional, there is no denying that it can be a good way to save money on
your business costs if you have a good eye for design and know some basics. And
with the help of the several DIY website building platforms that are now
available today such as WordPress, building your own business website has become easier and cheaper than ever.
Rely on Word-of-Mouth Marketing
There are lots of different ways to market your business
today, but many will incur costs for your business that you may wish to avoid.
The good news is that there are lots of marketing methods that are just as
effective without having to break the bank. Word of mouth marketing is a great
way to get new customers by turning the customers that you already have into
ambassadors for your brand. There are lots of cheap, simple things that you can
do to encourage your customers to take part in more word-of-mouth marketing,
such as including social sharing buttons on your content or offering referral
discounts and prizes. This can include offering a voucher to customers who
successfully refer a friend.
Go Paperless
Going paperless with your business is not only useful for
saving money, but it can also be a great way to reduce your carbon footprint
and be kinder to the planet as a company. While the cost of paper, ink,
printing, and postage isn't a huge amount, it can add up a lot over time if you
are not careful. Going paperless will not only help to reduce your business
costs, but it can also make organization much easier. Compared to having filing
cabinets filled with paper documents, you can simply save everything digitally
where it is easy to access.
Shop Around for Insurance
No matter what kind of business you are running, there are a
few types of insurance policy that are crucial to have, such as general
liability insurance, which protects your company against any claims that are
brought against it. Along with this, you should also have insurance for your
business premises and the equipment that you use to run your business at the very
least. However, staying with the same insurance company for many years is not
always the wisest financial decision. Shopping around for better deals when
your policy is coming to an end can help you save a lot of money in the long
run.
Buy Refurbished Tech
These days, technology has become more and more important
for any business in every industry. Chances are that, at the very least, you
and your employees are going to need laptops or PCs to work from. But buying
several computers at full price is an expense that can quickly add up. Instead,
it is worth buying refurbished tech instead to save money. Refurbished
computers are often available at much lower prices compared to buying
brand-new, and the tech is usually just as good.
Hire Freelancers
Working with freelancers and independent contractors can be
an ideal way to save money compared to hiring full-time employees when you are
running a business. Consider if you really need to hire a full-time employee
for web development, writing content, and other tasks. If you only need
somebody to do a few jobs per month, for example, then working with a
freelancer can be a cheaper and more flexible option to consider. However,
choosing the cheapest freelancer that you can find is not always the best
option, as the work may not be the best quality. It's better to pay somebody
once for top-quality work compared to paying somebody several times to fix it.
Cut Electricity Costs
Most business consultants who help business owners save
money will advise keeping a close eye on your electricity use as a way to cut
costs. With the price of electricity on the rise, it's even more important than
ever to make sure that you are doing what you can to save money on using
electricity in your business. For example, not leaving equipment turned on when
it is not in use, switching lights off when exiting a room, and unplugging
electronics at the end of the day might seem like very simple things to do, but
they can quickly add up to big cost-savings over the course of a year.
Travel Less
After the COVID-19 pandemic, many business owners have
realized that they do not need to travel as often as they used to. With more
video conferencing software programs now available than ever before, it's
easier than ever to set up a meeting with somebody in a different area, or even
in a different country to the one you are in. Instead of booking flights, you
can reduce business costs by using online applications for the best quality
video calling services like Zoom or Google Meet.
Avoid Unnecessary Debt
While it is often unavoidable when it comes to borrowing
money to get the things that you need for your business, it is a wise idea to
avoid as much unnecessary debt as possible. Before you make a purchase for your
business, it's worth asking yourself if you can afford it outright or if you
need to use a business credit card or another type of borrowing. If you don't
need to borrow, then it's worth avoiding it.
No matter what kind of business you are running, it's always
good to figure out the best things to do to keep your expenses as low as
possible and make more profit.
