Start saving with these cost-cutting tricks for your company.
Running a business is hard work. No matter what size your business may be, it’s likely that you feel like you have to wear dozens of hats a day and that you spend many of your waking hours putting out fires, answering questions and keeping your business moving forward.
With everything on your to-do list, it can be easy to lose sight of areas that may be costing your business money. So we’re taking a look at a few ways that your business can cut costs and keep more money in the bank.
1. Work in a coworking space
Many small businesses who are looking to keep costs low can benefit from renting space in local coworking spaces. These spaces can range from shared layouts with private offices for yourself and your employees, to open-concept areas filled with desks, little dividers and a more airy feel. Quite often, renting space in one of these areas includes access to a kitchen, board room and in some cases even a reception area.
Not only do coworking spaces help lend an air of legitimacy to your business while keeping overhead costs low, they also provide a great opportunity to network and get to know other local businesses.
2. Negotiate with vendors
Real talk: what you’ve been paying your vendors right now doesn’t have to be a fixed cost. Just like you, your vendors want to stay in business and are often willing to negotiate a lower price if it means retaining a long-term customer.
Shopping around to compare prices may feel like a waste of time, but even $50 or $100 a month can add up over time and can significantly impact your operating costs.
3. Hire interns
Many local universities and colleges offer student co-op programs where they will “loan” you a student to work for you—and they may even pay their salaries for you. In exchange, these interns receive valuable work experience and exposure to business like they couldn’t find otherwise.
This isn’t a great strategy for projects that require long-term commitments and a dedicated employee—for example, you might not hire an intern to do your demanding business IT. But for working on specific projects, assistance with competitive research or working on a client project requiring some additional helping hands, interns can be valuable and cost-effective asset to your organization.
4. Customize employee phone plans
Many businesses find that their lives are a lot easier when they issue company-owned mobile phones to their employees, but what your employees need may vary depending on their role within your company.
For example, a salesperson who spends their day connecting and following up with clients and leads may need more monthly minutes than someone who works in your accounts payable department. So why would they need the same plan?
Take the time to go over your employee’s mobile phone plans and discuss their needs with them directly. Then customize the plans to suit their needs, which can save you hundreds of dollars a month.
Related: Build your own wireless plan with MTS MyPlan for Business
5. Use cloud-based software
Gone are the days when businesses had to pay an arm and a leg for software. Now with the advent of SaaS (software as a service) businesses and cloud computing, businesses all over the world can enjoy the benefits of low-cost (or free) software, which can be customized to suit their needs.
Some examples of helpful cloud-based software are:
● Freshbooks for accounting
● Insightly for customer relationship management
● Trello for project management
● Slack for messaging with your teams
6. Review your giving policy
One of the easiest ways for a business to market itself and do good at the same time is to donate to local organizations. However, it can be time-consuming and overwhelming to figure out which requests you should consider and how much to donate.
Instead of wasting valuable time dissecting every application for donations, spend an hour putting together a policy that dictates your procedures and limits when it comes to giving. Put together a basic intake form with easy-to-complete fields so applicants can describe their needs and you can review everything at-a-glance. This can be especially helpful if you run a food-based business or deal in equipment and supplies commonly requested. It can save you heaps of time, which translates to money.
7. Cut down on maintenance
Daily cleaning service may not seem like an indulgence—after all, who doesn’t want to arrive at work to a sparkling clean desk every morning? However, over time these costs can begin to add up and it’s good business practice to regularly review your non-necessary expenditures in order to save money.
If you currently use a service to help maintain cleanliness around the office, ask yourself if you can do with weekly, or even bi-weekly cleanings instead of daily service. Ask your employees to take out their own trash, assign duties to load the dishwasher at night, or tidy up the kitchen at the end of the week.
Have we missed any key areas where your business could save money? Tell us in the comments!