5 short-term business expense cutting tips
Cost cutting is an effective way of boosting your bottom line.
Implementing short-term cost saving ideas can help make your company more efficient in the future, and negate bigger, tougher decisions later on.
Take a look at these quick and simple money saving ideas for companies. Actioned well, they can maximise saving opportunities within your business.
Negotiate and compare suppliers
Loyalty doesn’t always pay. You may have been with a supplier for many years, but have you stopped to see if you are getting a good deal? A renegotiation could be on the cards. Suppliers know it’s easier to keep existing clients happy than trying to find new ones, so taking advantage of this could save you money. It’s a competitive market after all, and no-one should rest on their laurels, even if they’ve served you well for many years.
Look at your finances
Finance is a central concern for every business – it ripples out and affects much of your day-to-day activity. With this in mind, your overdrafts, credit cards and loans could be racking up huge costs unawares. It’s time to reassess them. Like your suppliers, banks don’t always reward loyalty, so comparing costs could help you secure cheaper rates on your business bank accounts.
Cutting everyday expenses
Simple costs such as postage and stationery can cut into your profit margin if they aren’t monitored effectively. There are a few ways to trim these expenses, however, such as using email invoices and only printing when necessary. Storing data online will also help to cut storage costs and unnecessary wastage of space in warehouses and offices. The best money saving ideas for companies begin on a small scale, before impacting the bigger picture.
Consider employee costs
Employees are essential, but many full-time hires can drain your funds unnecessarily. There are several money saving ideas for companies looking to economise their workforce.
Some of them include:
Apprentices and interns – Consider employing students or people looking to learn on the job. Filling these vacancies will offer a low-cost solution while providing an enriching experience with training and development.
Outsource work – Hiring freelancers or contractors gives you the chance to work with professionals on a per-project basis. There is no commitment to employment costs; you only pay for what you need.
Rewards for non-sales staff – Introducing a reward scheme for all employees can often boost the team’s spirits. This means they’ll work harder, and generate more sales for the company, paying mind to efficiency across the board.
Face-to-face meetings with suppliers or stakeholders are great, but they’re also expensive if you have to travel far. Try video conferencing instead: Skype and Google Hangouts bring everyone together without the need for a long-distance meeting. It is also ideal for communicating in real-time with overseas contacts.
Another flexible cost-cutting solution is allowing your potential office staff to work remotely. This not only saves everyday costs in the office, it also offers employees the chance to manage their time efficiently, which can have a positive impact on performance.
Considering these simple money saving ideas could help cut costs and encourage sustainable business growth. It’s also worth mentioning Allstar Online, our online portal accessible 24/7 – it’s a convenient and reliable way of saving on fuel payments as your drivers hit the road. Speak to one of our team today for more information.