The best things in life may be free but in business, it’s all about the money. Yet businesses often struggle to find that sweet spot that allows them to spend on needed expenses without breaking the bank.
If you’re trying to work out how to keep costs low but bring in the moolah, then you’re in the right place – we’ve got you covered. Here are 5 smart cost cutting strategies to help get you started.
1. Track Your Expenditure
To find out where to reduce expenses, you first need to know what those expenses are. If you’ve been a bit remiss with this point, you’ll need to start from scratch.
Sit down with your notepad and pencil, and write down all the things your business spends money on. It’ll likely be a pretty long list but stick with it. Then, you’ll need to go back and find out how much you spent on them in the last 12 months or so.
Now you have a clear picture of what you’ve spent and where, in the last year. Moving forward, make sure your Accounts Department plugs in all those receipts, so you know just where your company money’s going.
2. Go Paperless
Using paper in your office costs you way more than you might think. The average office worker prints 10,000 pages a year and spends $725 doing it. By going digital, you’ll automatically save thousands each year.
On top of that, paper costs money to buy and store. By drastically reducing your paper usage, you may even be able to reduce your space requirements. This’ll leave you free to lease this excess space or even move to a smaller, cheaper office.
3. Revisit Your Company’s Contracts
This is an easy one, though it does require some legwork.
Compile a list of all your current contracts – insurance, suppliers, vehicle rental, etc – and see when they’re up for renewal. Then call up each company and see if you can get a better deal.
4. Implement a Remote Working Strategy
Working from home saves companies money, and it also saves their employees some dough, too. From their home office, your employees will be saving on their commute, while saving you money on your office space, energy bills and more.
If you write remote working into your employees’ contracts, you’ll be able to keep tabs on who will be in the office, and when. This’ll help you save on space, and even allow to you reduce expenses by moving to smaller premises.
5. Shop Smart
Another great way to cut costs is through shopping smarter. If you definitely need more office furniture, for example, look for discounts on websites like https://www.winc.com.au, and for savings wherever possible.
And second-hand doesn’t always mean second-class. Try auction sites and watch out for office clearance sales near you. You’ll probably find something that’s better quality than you could afford brand new.
Cost Cutting Strategies
The cost of running an enterprise can start to add up pretty fast, but our cost-cutting strategies will help keep your business hat firmly in place.
Record what you spend your money on. Go paperless – you’ll do the world a favor while saving money along the way. And when you shop smart, you’ll be able to have your office-shaped cake and eat it, too.
Another great way to save money is by keeping your organization skills on point. Check out this article to find out how to do it.