If your business operates under a low-profit-margin, you may be trying to cut business expenses anywhere you can to improve your bottom line. Here are five things you can do to reduce costs without sacrificing quality or customer service.
Negotiate with your vendors for lower rates. Trade services with other professionals. Share part of your office that isn’t being used. Partner with your neighboring businesses on marketing and buying supplies. You might even talk to your landlord about reducing your rent. Some municipalities even let you negotiate your tax base.
Think of your time as money. Does it make sense for you to spend four hours cleaning your office when you can pay someone to do it to let you focus on making $50 or more per hour? Can you contract with a bookkeeper to manage your books to free up your time?
Hire an inexperienced young person or an older person on social security who may need to limit their income and train them on the jobs you need to be done. Hire commission-based salespeople, if that fits your industry. Keep your good employees, because turnover is costly. Give them benefits that go beyond the monetary value. Offer training, mentoring or flex-time.
Use Organic Marketing
Encourage your customers to review your business and give referrals. Offer discounts on social media pages to build your business. Instead of spending money on Adwords campaigns, use other avenues to spend your marketing dollars most effectively.
Turn off lights, computers, and electronics every night to lower your electric bill. Buy used furniture or recycled print cartridges to save money. Even better, go paperless. Buy in bulk when possible. You might save on shipping costs, too. Let employees telecommute if possible. They save on gas money and get to work from home, while you can reduce your office expenses by not heating/cooling and lighting it.
Contact Mossberg Strategic Capital for financing options for your business.