As a small business, reducing your bottom line to let your profits flow is by far the most important thing. You can be making $10,000 in sales every week, but if your business costs $8,000 to maintain, it will be hard to sustain your business for long.
You’ve probably approached some cost saving initiatives to increase your profits, but if you’re still not seeing the results you want, try some of these highly effective cost saving tips.
- Reduce Waste Removal Costs
For 90 percent of businesses, there are multiple options for waste removal. Small businesses often don’t recognize that the cost for waste removal is highly competitive, and as a result, they’ve been paying too much for their waste management. Take a closer look at your options and find a better priced alternative for the same service.
Labor is most businesses’ biggest expense, but you don’t have to go with traditional labor options to make your business run smoothly. You’ll need some full or part time employees to keep things running smoothly, but much of the work can be outsourced to freelancers or companies.
Rather than hiring a marketer to run your SEO campaign, outsource to a more affordable SEO marketing company. Since you aren’t paying wages and benefits to a full time employee, you’ll likely save big while also getting a quality service.
- Use Guerilla Marketing
Your unconventional marketing tactics that often piggyback on your competitors will introduce you to new customers and make your organization more visible. This option is a much lower cost alternative to traditional tactics and can often be more effective.
- Hire Interns
Another great way to save on labor costs is to hire free workers. As a small business, you can market to smaller universities for intern opportunities. Though they’re not being paid, it can be a mutually beneficial experience for those on your team.
Those interested in perfecting a creative skill like writing or design can benefit from leading your creative team. Students aiming for entrepreneurship can learn about starting and running a small business. It’s a win win.
- Go Green
When your space is more energy efficient, you’ll save hundreds on utilities. Change to LED or compact fluorescent bulbs, install a more energy efficient HVAC system, use smart thermostats, and implement other energy and water saving measures that will save money in the end.
- Minimize Inventory
Carefully look over your inventory sheets and make sure you’re not overstocking any items. Items that have sat on the shelf, untouched for more than a month are not likely to bring in any cash. Sell such items for a discounted price and only stock inventory that you know you can sell.
- Buy Used
When first starting out, don’t buy into the idea that you need to purchase everything new. You can often find used office equipment and furniture that will serve your purpose without breaking the bank.
These are small steps, but when brought together, they can make a huge difference on your bottom line.