When your small business sets out to reduce its operating costs, you are creating a competitive edge for yourself in your industry. After all, the money that is freed from operational costs can be re-allocated to product development and employee salaries. As a small business owner, you should regularly identify ways to cut expenses without sacrificing the integrity or quality of your products or services.
Slashing your operational expenditures often has to do with making smarter choices with respect to determining where best to allocate your money. From leveraging more technology to going paperless, there are plenty of ways to reduce your operating costs.
Automate Time-Consuming Tasks
There are myriad online systems and software programs that are capable of automating and streamlining your daily functions. Among the tasks that you can automate are payroll, marketing communications, accounting, and website hosting.
Why not leverage technology more to bring about greater efficiencies for your small business? Technology can improve supply chain processes, in addition to finding solutions for activities that include decreasing the costs of shipping raw materials.
To help you figure out where there are opportunities for automation, consider the tasks that require the most time on a regular basis. Ask yourself which repetitive, time-consuming activities would you like automation to take over for your small business. This will help you identify where automation can play a role in cutting your operational costs.
Although you may assume that the cost of mailing supplies, postage, ink, and paper are negligible and don’t really impact your operational costs, they can total a substantial amount. When you switch to paperless, you significantly cut back on some of the most common recurring costs to your small business.
You can simply choose to transfer paperwork onto digital systems, transition to a digital invoice and bill payment system, and don’t print unless you have no other choice. These may seem like modest measures to take, but they could save your small business considerable money over time.
Discontinue Unnecessary Services
Take a close look at what services your small business has used in the past year or so. If you have not used a particular service for the past quarter or longer, consider canceling that service. Perhaps evaluate the services you are still paying for and determine if it is possible to find more affordable alternatives. You might also decide to renegotiate your existing contracts.
The objective of this exercise of collecting and analyzing your spending data is to reduce your procurement costs and increase efficiency.
Hire Freelancers for Work Not Core to your Small Business
You will find that outsourcing functions such as website maintenance and bookkeeping rewards your small business with not having to pay payroll taxes or offer benefits to an independent contractor. You simply hire a specialist – a freelancer – for a specific project, and it gets done efficiently without the added costs that come with paying employees to do the same work.
You might be surprised at how much money your small business can save by utilizing freelancers or independent contractors for many types of activities. You enjoy the financial benefits of having fewer people on your business payroll without compromising on the quality of your mission-critical activities and jobs.
You can search for freelancers on sites like Upwork, Freelancer, or LinkedIn. Connecting in local Facebook Groups is a great way to find potential contractors.
Cut Back on Infrastructure Costs
You can realize significant savings by moving your small business into a smaller office space. What’s more, you could replace your traditional offices with a shared workspace for clients or customers that allow you to have productive meetings. You enjoy the savings that comes from reducing your infrastructure costs by being innovative and maximizing the use of space.
Don’t overlook other infrastructure costs that can be decreased by negotiating for reduced rent and identifying areas for additional cost-cutting when it comes to insurance and utilities.
Purchase Refurbished Equipment
Buying brand new retail-priced equipment can contribute to huge operational costs. Why not opt for the cost-saving option of purchasing refurbished furniture and equipment that is, in most instances, every bit as nice as what you find at retail establishments?
Enjoy discounted prices without sacrificing on quality or appearance.
Scale Back on Travel Costs
With all the advances in media technology that includes video conferencing, there are far fewer reasons for relying on business travel nowadays. In fact, a recent trend shows a major drop in business travel, and that is expected to continue.
When you factor in hotel costs, the increasing air-fare prices, delays, and missed flights at record numbers, it is no wonder why more businesses are cutting way back on travel expenses. With video conferencing, your small business can conduct all the business you need to internationally without ever having to step foot on an airplane.
Consider assessing your business travel budget and decide which trips are necessary for face-to-face meetings, as opposed to meetings that are able to be done virtually. Scaling back on your travel expenses puts money back into your operations, and it is also better for the environment.
Rent Our Private Offices at Burbity Workspaces
With Burbity Workspaces, you can enjoy the privacy of your own furnished office that includes a lockable office door, 24/7 access, and mail service.
At Burbity Workspaces, we offer offices, desks, and team suites so your business can thrive and reach its full potential. Take advantage of our convenient services and ample resources with our Spokane workspaces that also offer a community to support and help you succeed.