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How To Save On Business Costs

Anna Johnson Anna Johnson , 4/23/2018
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When running a business, there’s always pressure and the bottom line is key. But there’s more to profit than just the money coming – you have to also think about the money going out. Sales are great, but if you can save on your costs too then your bottom line will truly benefit. Here we look at a number of ways in which you can save on your business costs and thus boost your business. Read on for some top tips and ideas…

 

Space

Whether it’s an office, warehouse or a shop, space costs money. What you need to think of is not only how much space you really need, rather than how much you’d like, but also where this space is. If you’re an online presence, then you can afford to be away from footfall – something that is critical for a physical store. You also need to utilise your space better too – you can go up as well as out don’t forget, and areas don’t have to have one sole purpose – such as rarely used boardrooms.

 

People

Staff will always tend to be the highest cost of any business. But there’s always the possibility of automation or outsourcing certain tasks which may prove cheaper. That doesn’t mean that you shouldn’t reward good staff with great pay, of course not, but you need to think about the returns that they bring on the money they earn. So if your top sales person earns £50,000.00 but brings in three times that amount, that’s a better investment than another salesperson who only costs £30,000.00 but brings in only £60,000.00. Think about returns not just outlay.

 

Delivery Services/Vehicles

Is this an area to outsource, or is it better run in-house? You need to think about the cost of using a third party, it may be less, but then again, nobody will care more about your business than you. However, when it comes to delivery services, perhaps it’s better to make the most of the economies of scale of the larger service providers – meaning less overheads for you.

 

 

Service Providers/Suppliers

Your clients expect a great service – and so should you from the companies that give you a service. If you’re able to, try and gain the best deal possible in the same way that your clients would feel happy to haggle you down! Your custom is important to them!

 

Advertising

This can become very expensive, very quickly, and whilst it is often a necessity, it’s something that should be reviewed regularly and carefully monitored. With today’s social media, a lot can be done by the individual too – another way to save costs, but remember…

 

Time…

…Is money, so use it wisely. Delegate where possible, and do not micro-manage. Your business needs your time, but you cannot do everything by yourself.

 

So there it is. Whilst you must try and increase the money coming in, you should never forget the money going out of your business. Look to save costs and boost that bottom line. Make it your business to act now!