Partner Article

5 Ways to Cut Costs for Small Businesses

Working in business holds a lot of responsibility, and in these complex financial times it’s more important than ever to cut excess costs in order to keep things thriving, especially if your business is a small one. Small businesses tend to be at a higher risk of closure and would benefit most from some simple cost-cutting measures.

Downsize

Offices are great working environments, but may not be crucial for a small business. Many people choose to work out of the home in order to save on renting space, but there are other options that will help you maintain a professional atmosphere at significantly less cost. A Virtual Office from companies such as Regus is an efficient and popular method for downsizing on office space.

Ask for Discounts

If you have regular suppliers you go to for stationary, equipment and so on, why not be bold and ask for a discount? Repeat business can lead to unnecessary costs that could be slashed easily, you just have to ask. Suppliers and vendors may come to value your custom and be willing to reward your loyalty; if that’s not the case, then you may want to consider looking elsewhere for better prices.

Make the most of staff

Cross-training current employees will reduce the need for more staff and thereby reduce expenditure. Small businesses should have a focus on maximising their employees skills and abilities to ensure that they are doing the very best they can, with particular emphasis on the right role for the right person in order to increase efficiency and productivity all round.

Network

Marketing is a core contributor to a business’ success as it helps get your name out there and generate interest and sales, but many people fail to use it effectively. Great marketing doesn’t have to cost the earth in this current age of social networking. Set up a Facebook page, get a Twitter account and start spreading the word for free!

Buy in Bulk

Buying in bulk can have some great advantages, but it’s important that you do it sensibly. While buying in bulk can lead to savings overall, it’s easy enough to go overboard in the face of a seemingly good deal. Instead, try and maintain realistic targets when buying in order to avoid overspending masquerading as a saving. Lack of strategy in bulk buying can often lead to overstocking, which results in a loss of money.

This was posted in Bdaily's Members' News section by Sarah Atkinson .