Tips to cut down on business expenses

There are a number of ways to reduce costs in your business without affecting its efficiency.  Many businesses are working on a very tight budget and business owners worry that implementing any sort of cost cutting measures will impact efficiency.  However, this need not be case, with these top tips, you won’t need to impact your company’s efficiency.

We live in a digital era where with a click of a button, someone across the world can receive the same document you have just printed and posted.  Printing documentation is costly and unless you have to, is very hard to justify.  How do you reduce this cost?  Simple, go digital.  Printing is not cheap and requires a lot of resources, equipment and maintenance.  With the abilities of cloud software and  back up servers which save everything for you, there’s a double saving – ease of access and less printing.

Check to see whether your suppliers give discounts for paying early.  These suppliers are struggling on cashflow just as much as you are because of late payments by their customers.  They are most likely willing to go ahead and give discounts if you offer to pay earlier than usual.  Not to mention the great relationship you will be building with the supplier which might get you better deals in the future.  Of course, paying early is not easy, you need cash on hand for that and it puts pressure on you.  However, it could be of benefit to you.

Having a bigger inventory for a slightly better deal, seems like great idea at the time but in reality there are costs associated with carrying a larger inventory.  Think storage fees,  maintenance fees, spoilage, the list goes on.  It’s very important to have the correct amount of inventory without over kill. It could help with cashflow and reduce wastage.

Social media is a great way to cut advertising costs, it can be more effective and it can cost a fraction of the price.  To make the most for your investment it’s essential to study your market and find out who you are marketing to and what method is best.  Nowadays, many people do not buy magazines or newspapers and since COVID-19 graced us with it’s presence, even leaving their houses, so the best way to get their attention is likely having a digital platform to grab their attention.  If it’s staring them in the face every day, they will remember it, even if they don’t want too.

INTERNS! Hire them, they are willing to work for the experience and it’s free. YES, I said it, it’s free!  It’s a win-win situation for everyone involved.  There are a lot of graduates looking for jobs or internships.  A lot of them are bright minds with talent and will work hard to grow your company and in return they gain some great experience.  You will need to give them some training but it will definitely still save you a lot of money in the long run.

Everyone needs Insurance.  So don’t take the first deal you see, shop around, make sure the deal you’re receiving is the best one out there.  There are always deals from other companies trying to find the business, all you have to do is ask.  As I was always told, what’s the harm in asking, they either say No or Yes, and if it’s yes, then YAY.

Renting a big office space whuch may not be fully occupied can be a good opportunity to utilise the additional work space by sharing the space with another company and sharing the rent (subject to your lease!).  This will give you the ability to rent in a good location and minimise costs.  If you have multiple empty office rooms, then why not rent that space out for a week or on days when need it’s needed.  It could lead to more sales, as your “tenants” will have to advertise the space for you and bring clients in the door, even if they aren’t originally interested, you don’t know what it could bring. Any sort of attention from potential clients is better than nothing.

It is essential to check your budget regularly to how you are tracking each quarter or month.  Keeping track of your expenditure and keeping an eye at your expenses will help you see where you are spending/wasting money.  And if you don’t already know where your money is going?  I would recommend making a budget and starting from there.

There are many different ways to save money and improve the cashflow you need to start making a profit, all you need to do is be given the right advice.  Here at Venta we are always willing to help you with any query you have.

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