Running a business can be an expensive venture. However, costs does not need to be high at all times. Here are 5 simple methods to consider in reducing those outgoing costs for your business.
- Reducing labour costs
Reducing labour costs by hiring interns to take some burden off the workload. Not only they are given the opportunity to have work experience, businesses can benefit from low cost labour. Most of the time, they would need to be trained on how to use softwares and the company processes, so the costs and advantages must be considered when considering this method.
Otherwise, outsourcing labour by hiring short term freelancers to help out on projects is a great alternative. The main advantage of this method includes not paying a full time salary, and that consideration can be made in hiring them for current or possible positions after the project has ended. This would reduce significant costs in recruiting and training talent.
- Use of technology
By utilising free cloud technology such as Google documents, this would reduce cost on software and save money on expenses such as printing on paper.
Furthermore, using Skype for business meetings nwould reduce costs, stress and time in travelling for business meetings. This can be also cost effective if some businesses also allows workers to work from home, and communicate through emails and work chat groups. As a result, businesses may see a reduction in electricity bills, and employees they can have that work life balance. This may help in achieving a smaller office which would reduce operational costs.
- Paying invoices promptly
By paying invoices without delay, a discount may be granted by your supplier if they receive it earlier in the first couple of days. This method is advantageous in building a good long term relationship with suppliers. In addition, businesses can gain leverage in negotiating prices with suppliers, as they would rather keep them as their regular customer instead of becoming their loss.
- Used equipments
Good quality, second hand softwares and equipments can be found at a discounted price since technology are constantly being innovated replacing older versions. Second hand equipment can be still as useful at a lower price which can help in reducing expenses. Or if it is on a temporary basis, there are options to rent equipments too which would be a great alternative in helping businesses save,
- Arranging lower credit card Annual Percentage Rate (APR)
As a business, benefits can be gained from credit card packages from your credit card lender such as flexible borrowing. Credit cards may be used for business travel expenses or minor purchases. Businesses can negotiate for lower credit card APR with their lender should they find themselves paying a high annual percentage rate. Thus, they can reduce costs and create huge savings in the long term.