Cutting down on business costs have become very important today more than ever before, if not for anything else because of the tough economic times that have characterized the recent past. Every opportunity to work within the set budget and save a hard earned coin should therefore be taken with the seriousness and magnitude that it deserves by business of all sizes. But it is a well known fact that cost cutting in a business is better said than done. So what should you do if you are the business owner looking to cut down on some expenses without compromising on the quality of service or products that you have on offer?
How is your Human resource?
The first thing you want to do is to review your human resource. Do you have employees whose job descriptions can be merged with that of others? If so, by all means lay off some of the employees who are doing nothing, or whose tasks can be handled more effectively and competently by others. Still on point, you can significantly cut on cost if you hired versatile and multi-talented employees. These are very efficient and can handle several tasks when compared to those who have specialized in single fields.
How is your communication network?
We live at a time where the internet offers a more efficient and convenient mode of communication. So if you are still using telephones to communicate within departments, you could be incurring an extra expense. The best course of action would be to use such things as IM, emails, etc to communicate within departments and probably keep a single telephone or two for important calls. This can significantly save you a substantial amount of money in the end, and besides, it will increase productivity.
Cut down on Travel expenses
Did you know that you could cut down on travel expenses by up to 100%? Thanks to advancement in technology, today you can request for such things as conference calls between people from anywhere in the world. This can significantly cut down on business costs associated with travel and accommodation, and will eventually increase productivity because of the amount of time saved from not taking the flight or driving.
Purchase office supplies in wholesale/ bulk
You don’t need to be a rocket scientist to know that buying supplies in bulk, rather than through the retail market can significantly cut down on business costs. If for example you discussed with manufacturers and wholesalers to be delivering your office supplies right to your company, you can significantly get the products at a reduced rate and might even earn a discount in the process.
Make use of the Internet
The advent of the internet revolutionized the way people do business, especially when it comes to marketing. Today, you can be able to cut down on marketing costs incurred through marketing mediums such as the print media, TV, etc by taking your marketing campaign online. By advertising and promoting your business online, say for example on social networking sites, you can be able to reach a significantly wider target audience than when doing it on print media. Of course you will need to identify your target market first so as to know which would be the most effective medium.