It’s hard to keep your business going if you can’t afford to continue having your doors open. Between rent on the office and managing your employee’s wages, the costs shoot up pretty quickly. There has to be a way to reduce the financial burden.
How can you cut business costs? It’s not as hard as you may think. Sometimes all you have to do is make a deal with the right people.
You may be able to talk to your landlord to reduce your office rent or ease your insurance costs by speaking to your provider. These are only a few of your options. Keep reading to learn more.
Start With Your Office
For most business owners, their highest operating cost is their office rent. Your landlord may be willing to work with you by renegotiating your lease terms. Even if they can’t give you a better deal, they could allow you to move to a smaller office building nearby that costs a bit less than the other one.
Depending on what kind of company you run, you might not need to get a lease on a building at all. If you don’t get a revolving door of customers or don’t need that much space, you could run things out of your home.
It will save you from having to pay rent, and you’ll only have to pay your house utilities instead of forking over money to keep both your house lights and business lights on.
You will need to do some research before you go this route. Your neighborhood may not allow it, not to mention, your family might not be too happy with your clients coming in and out of the house every day.
Outsource Your Accounting
We realize that it’s a little strange to talk about hiring a service when we’re talking about business cost cutting ideas but hear us out. Outsourcing your accounting saves you from having to hire, onboard, and train employees to take care of the job.
You can try to handle your own finances, but let’s just say that your employees enjoy getting paid. They’re not working for you out of the goodness of their hearts.
If you mess up their paychecks, they’re not going to be too happy with you. It could result in an expensive lawsuit. Getting a professional onboard will ensure all your employees get their money in a timely manner.
If you fail to crunch the numbers correctly and put any wrong information on your tax forms, it will land you in trouble with the IRS. If you want to avoid any nasty fees, you’ll look into tax preparation outsourcing.
Cut Your Staffing Costs
No company can run without staff members. The problem is that having them costs a lot of money. It’s expensive to train people and there are also onboarding fees.
An easy way to cut costs in business in this regard is to hire as many of your family members as you can. Working at your company will give the younger people in your family valuable experience.
You could also hire a few freelance or contract workers. They don’t come with as many of the same costs as traditional employees do.
Lower Your Production Costs
One of the ways of cutting costs in a business is to look at your materials. How much do you spend on your production alone? Is there any way you could make back what you spend on metal and cardboard?
The answer is yes. You can sell your boxes and metal instead of tossing them in the recycling bin. If you can’t sell them, you may be able to make the most out of them by using them to create a different product.
If you have any leftover warehouse or office space, consider leasing it out to another business. Use tracking apps and software to measure your efficiency and make new goals. This will allow you to make a strategic plan that will help you use your resources to their fullest and get your money’s worth.
Use Technology to Your Advantage
Technology is there for a reason. Make the most out of the latest advances by hosting virtual meetings with your staff instead of getting together in person. It will save you on gas.
Instead of using pen and paper documents, create a workplace Google Doc where your team can work collaboratively. The future is now!
Ease Your Insurance Costs
The second most expensive cost that businesses deal with is their insurance. If you don’t have it, though, it will cost you even more money if you’re sued or one of your employees gets hurt.
There are ways to lower your monthly bill. For one, shop around at different companies. You may be able to find a better deal than what you have now, or your current insurance provider could be willing to match the price that you found with another.
Consider consolidating your policies and look them over. After reevaluating, you might realize that you’re paying for more insurance than you’re using.
Cut Business Costs With These Tips
Are you tired of spending too much to keep your company going? There are ways to cut business costs and make those monthly bills a little less overwhelming.
By performing an analysis of your company, you’ll be able to see where you’re overspending and create a strategy that will allow you to save. The solution might be a simple matter of talking to your landlord or finding a new insurance provider.
For more advice that will help you keep your company afloat, visit the Business section of our blog!