Do you know why many small businesses fail each year? Statistics show it’s likely because they’re investing too much and earning too little. To help your small business overcome this problem, here’s a list of 4 brilliant ideas for your small business to reduce expenses and reach your financial goals:
As a small business owner, it’s essential to aim for cost-cutting wherever possible. So, the less money you invest in production and office expenditures, the greater your profit margin will be.
Telecommuting is an excellent way to cut down on electricity costs. By encouraging your employees to attend conference calls online from home and work outside the office while keeping you updated through emails and other forms of online communication, you can successfully reduce electricity expenditure within the office, hence reducing the cost of running your business.
Telecommuting employees may work on-site as well as at home. So, you’ll have to spend some amount on office electricity bills, albeit less. However, if you’d rather eliminate the cost of paying for your employees’ electricity altogether, consider hiring remote workers.
Such employees primarily work as contract-based freelancers and will send you digital material to facilitate the running of your business. Outsourcing your work can also help you reduce your office space, which brings us to the next point…
Downsizing your office may include renting out a smaller space for on-site employees or moving into a home office and hiring remote workers, like contract-based freelancers.
By downsizing on office space – or eliminating it altogether – you can successfully reduce your office rent payments. In addition, because office rent is one of the greatest expenditures a small business will have to bear, you can save a significant amount in investment costs through downsizing efforts.
In addition to rent, running an on-site office also demands you pay for electricity and maintenance costs. Naturally, having a smaller space to look after can help you reduce electricity and maintenance payments, too.
Another excellent way to save on business expenses is to buy preloved, second-hand office equipment instead of new models. Doing so can help you save significant amounts of money because used products cost less than box-packed options.
However, be sure to thoroughly check the product before you purchase it. Used products risk being faulty or damaged, which is why it’s better to buy items that are only slightly used (less than 12-18 months is ideal).
If your business is aimed at generation Y, millennials, or Gen Z, you’re better off advertising on social media as opposed to traditional platforms like television or radio.
Not only are social media advertisements more affordable in terms of ad cost than other advertisement platforms, most of them, like Facebook, will charge you on a cost-per-click basis, meaning that you’ll only be charged when a prospect clicks on your ad! So, switch over to social media for advertisement, and you’re bound to save a significant amount off advertisement costs.