Cutting Costs For Small Businesses
When John opened his first business, he was the proudest guy in the land. The first year was fantastic, since persons were drawn to the novelty of having a new business in their area and others were drawn to John’s magnetic personality. In his first year, he decided that things were going so well, that he would open a second office and hire two more people.
However in his second year, things were not so good. The government imposed two new taxes that affected his clients; his employees were sometimes ill or distracted with other personal matters; and many of his deadlines could not be met. At the end of the second year, he found himself in a quandary over having to dip into his savings in order to meet some of the business obligations. As we all know, that just ain’t right! If you find yourself in a predicament similar to John, I hope the tips outlined in this article are of help to you.
- Virtual offices. There are many options by which you can have an office without renting a physical space. Virtual offices are cheaper than their brick and mortar counterparts; and also allow working from home, which saves time on commuting and other costs such as electricity, daily bought lunches as so forth. You can even use free software to link your team, so that there is the necessary accountability.
- Ask for discounts. Some of us may not think to ask a supplier for a better price, but it does work. If you’re buying reams of paper from a supplier each year and they know that your business is guaranteed, chances are they will consider giving you a discount if you ask for it. If they don’t shop around and you just may find a cheaper provider!
- On the point of paper, I remember a consultant from a company called Infinite Lean Solutions saving a small business over four hundred dollars per month by automating billing with software, so that mailing and paper costs were totally eliminated.
- Raise your prices. Do some market research. If you’re the cheapest provider on the block, chances are it’s time to increase your rates. Unless you’re in the product business, being cheaper will not necessarily translate into getting more wealth. Service-based businesses can justify higher rates when their level of expertise or service dictates it.
Analyse your options carefully and determine what is best for your business. When you decide, don’t feel badly that you need to cut costs. Almost all businesses do at one point or another…it’s the way of the world of business!
Lots of love & good vibes, Veoma Ali
Veoma Ali is an Advertising Executive, with a Ph.D in Communications and a Masters in Business Administration.