Business & Community
Even in a pandemic-free world, every penny counts. With current times being so uncertain, small businesses must be even more diligent when it comes to saving money. Every dollar saved, even the smallest increase in revenue or reduction in expenses, can have an impact on a business surviving or collapsing. It is often simple, basic steps that can improve the bottom line, especially for a small business. Following are a few simple ways to cut business costs, help owners stay afloat, and to keep finances in the black.
Cut Production Costs
Now more than ever it is imperative to look for ways to cut material costs and to optimize business resources.
- Contact vendors about possible discounts, credits, and free deliveries.
- Shop around for vendors that offer better quality items and prices.
- Consider large discount suppliers, even if they require membership.
- Sell excess inventory online if the means are available.
- Apply the three Rs – reuse, reduce, and recycle – whenever possible.
- Consider going paperless. E-receipts are popular and may save extra fees from certain vendors or banks.
Business owners may be able to save money by reviewing operating expenses, such as insurance policies or by not hiring new staff.
- Evaluate insurance providers and policies.
- Shop around to get the most competitive rate.
- Consolidate insurance policies or bank accounts if possible.
- Avoid acquiring new debt as much as possible.
- When needing to apply for a loan, shop around for the best loan terms.
- Consider giving incentives to employees that could perform two jobs, rather than hiring extra help.
While marketing is critical to any business, there are ways to cut marketing expenses.
- Build a customer email list and implement a referral program.
- Offer some incentives to returning and new customers with a referral program.
- Cut marketing costs by doing more in-house or use word-of-mouth promotion.
- Increase social media use and reduce traditional marketing strategies.
- Take advantage of free advertising.
Reduce business costs by operating virtually. Going virtual also helps staff to social distance.
- Holding virtual meetings will reduce travel expenses.
- Virtual offices (working from home) can also eliminate the need to lease physical office space.
Embrace DIY Projects
A business owner can consider doing its own repairs.
- People do not always have to hire a professional to fix repairs. When it is safe, owners can try to fix things themselves whenever possible or enlist the help of a relative or friend.
- Postpone nonessential renovations or repairs.
Cut Utility Costs
Look for ways to cut utility costs.
- Turn off lights and equipment while not in use. Leave only the necessary lights or signs on overnight.
- Keep thermostat on one set temperature instead of switching back and forth. Find a compromise among employees.
Finding ways to cut costs while maintaining high-quality service is not an easy task, but it is possible. These tips and ideas can even be used in a post-pandemic world. Take a moment to evaluate where the money is going to start cutting back. Remember, every dollar saved will make a difference.