Nowadays, It has become very difficult for small businesses to operate. Many small businesses operate on a tight budget. Such businesses are looking for ways in which they can reduce their operating costs without sacrificing the quality of their product and without putting their employees in any difficulty.
How can operating costs of a business be reduced? What are the best ways to reduce extra costs?
Below are 7 ideas which can help you reduce costs of your business and generate more revenue.
- Cutting standard phone systems: using voice over internet protocol (VOIP) phone services instead of installing a phone system will be very beneficial as far as cutting costs is concerned. In Layman’s language, it is phone services over the internet. In addition to that, there would not be any problem using VOIP services. Good communication will be experienced at lesser costs.
- Reduce costs with outsourcing: Certain business practices like advertising and marketing can be outsourced. The responsibility of such practices can be given to other firms and consultants. These activities are anyway pain point for many business owners. So, it is better to get this done from someone who has expertise in it. It might seem that hiring other vendors will result in spending more money, but that is not the case. The truth is, hiring other vendors will prove to be more beneficial. It will show better results and would not be that costly.
- Go digital- embrace technology: All the tasks that can be done over internet or on digital mediums, should be done that way. There are many online systems and softwares that has automated certain business activities like accounting, payroll and website hosting. These softwares has made businesses easy upto an extent.
- Cancel unused services: All the services that has been installed in the office but has not been used for past three months must be uninstalled. Clearly, all such services are not of importance. Make a rule to deactivate all the services that has not been used for about 90 days.
- Go green: Consider turning your office space as green as possible. Replace regular light bulbs with fluorescent lightning. Reduce physical waste as much as possible. Use internet for communication. Reduce air conditioning costs by improving insulation and windows. Avoid fax machines, use emails instead. These things will result in drastic cost cuttings.
- Shared office space: With increased demand of work place in lower costs, many businesses have started offering coworking spaces on lease. It has the environment of official business places and also helps in professional interaction. They assure lesser rents which results in lower operating costs. It is a fully equipped office space designed for individual, small and medium enterprises.
- Telecommuting: Another solution for the office spaces problem is telecommuting. All the employees sitting at their homes, working together connected through digital means. It does not only reduce operating costs of business but also saves times and money of employees wasted on commuting. Work from home is anyway, getting popular amongst people.
Cutting costs is not impossible for small businesses but working on a tight budget depending on how comfortable you are with it, can take a little time getting used to it. Do not be afraid of spending money on necessary things or people that the business requires. But take an extra moment or two to consider the long term effect of the services.