Ways to Cut Business Costs

Ways to Cut Business Costs

When you own a small business, no matter how successful, there are always benefits to cutting costs. With the new year and quarter in full swing, it’s a great time to sit down and peruse your finances. Even if your company is struggling financially, you may not have to drop to the extreme of letting employees go quite yet. Check out these creative ways to cut business costs that can save a ton over the course of even just a year.

Reduce supply expenses

Office supplies are obviously essential to a functioning office; however, they can be reduced with a few small changes.

Purchase cheaper writing utensils

If your business is using a midrange or higher-end pen, try switching to bulk orders of a less pricey pen. As long as the pens can effectively write on paper, there should be no issues to address when switching. Over time, this small change can add up to big savings.

Go paperless

Cut paper and supply costs by moving toward paperless. Encourage customers to sign up for e-billing, offer emailed receipts, and encourage employees to use computers or devices for notes rather than paper.

Switch to reusable

Make the move to reusable products for things you and your employees use around the office. Here are some easy-to-switch-to examples:

  • Coffee filters
  • Cups and mugs
  • Plates and utensils
  • Water filtration systems to cut down on disposable water bottles

Cut office space costs

Consider the costs of keeping an office space open and running and think about ways to reduce or even eliminate these expenses.

Encourage telecommuting

Encourage your employees to work from home. This will make employees happy because it will reduce their transportation costs, improve their quality of life, and cut costs. Eventually, you can move into a smaller office space and really reduce location expenses.

Control the temperature

Take control of the temperature. This doesn’t mean freeze your employees, but it does mean reduce the heat by a degree or two in the winter and raising it by a degree or two in the summer. These small changes can add up.

Unplug unused items

When the workday is over, unplug computer monitors, appliances, printers, and anything else that can be unplugged with no dire consequences the next morning.

Improve efficiency

In employees

Encourage employees to work more efficiently. This can be done by putting incentives in place, inciting friendly competition, and simple encouragement.

In logistics

Look over your current logistics plans and rethink them. Many companies have found money savings in switching to a third-party logistics company that has the time to optimize your shipments and find cost-cutting areas for you.

Your business can cut costs without making drastic changes to the way your company operates or the way employees feel about their workload. Little changes add up to make a big difference over time.

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