The success of every business is determined by the ability to cut costs and generate more income. In the current less favourable economic times, businesses should try to focus more on taking relevant cost-cutting measures, and creating extra income.
The Best Ways Of Cutting Business Costs
- Substitute Telecommuting For In-Person Work
Allowing and encouraging your employees to work from home is one of the best ways to cut business costs. This is particularly suitable for employees in IT and support positions, who can easily carry out their duties away from the office. It will help you save on the cost of renting an office space and feeding your employees. You will also save your employees time and money that they could otherwise spent commuting.
- Negotiate Lower Supply Costs
One of the most creative ways of cutting business costs is by asking for discounts from your supplier. If it is hard to get discounts from your current supplier, you can look for an alternative supplier with a reasonable price list. There are a number of suppliers who are always willing to offer discounts in return for a testimonial, bulk-buying, or a client.
- Reduce Energy Use
Spending less on electricity helps you in cutting business costs and saving for other important investments. Save on the cost of electricity by switching to energy-saving bulbs such as the compact fluorescent bulbs. Switch off all electronic devices that are not in use at any particular time.
- Reduce Travel Expenses
Eliminate or cut all business trips that do not generate income for the business such as meetings or conferences. Instead of travelling out for business conferences, you can turn to Web conferencing services to communicate with your clients, suppliers, partners, and employees. Modern technology allows you to get in touch with people in faraway places via voice, text or video chat.
- Switch to VoIP Telephone Services
The cost of using a VoIP telephone service is less expensive as compared to using a conventional phone. In VoIP phone services, calls are routed through internet connection instead of the traditional telephone lines. Through this technology, your outgoing calls cannot be located geographically, eliminating all long-distance charges.
VoIP systems only require you to have a phone. They do not need on-site routing equipment or phone cabinets to function. They basically help your business in eliminating maintenance and equipment charges.
- Cut the Paperwork
Paper is generally expensive for any business. One of the best ways through which you can cut paper costs is by filing all the vital business records electronically. Keep all the records in spreadsheets, your email box, or store them is a special flash drive. Put them in print only when necessary instead of piling them up in papers. This reduces the need of more papers in the office and helps you in saving a lot of money.
- Eliminate Corporate Parties and Events
Corporate parties strain the company’s budget as they are very expensive to organise. They should only be held when necessary.