Running a business is a constant balancing act. On the one hand, you’re looking to chase leads, seal deals, and nudge your income up month by month. But on the other, you’ll be keeping an eye on your overheads, your spending, and your investments so that you’re always reducing your costs. All this entails a great deal of work and diligence and, for small business owners, that means plenty of time working. To give you a helping hand, here are four tried and tested tips to help you keep your business costs down – leaving you free to chase higher and higher profits.
As your business grows, your profit margins should naturally become more efficient. That’s because you’ll be able to make your purchases – of equipment, stock, raw materials, or office supplies – in larger and larger quantities. When you do this, you’ll be able to secure lower rates per item – discounts that you’re rewarded for taking more off the seller’s hands. Whenever your business scales, you should be looking to renegotiate contracts through higher bulk buys, ensuring that you’re always getting the best deal on your purchases.
Whether you’re running a local shop, an office space, or a manufacturing plant, you know that some of your key monthly running costs – fees that seem ever-present and non-negotiable – are your utility bills. Electricity, gas, water, and the internet are the key ingredients that prop up any business, and you should always be looking to secure better deals for your access to them. For water, look no further than Business Water Quotes, which will show you the best rates on the market. For the internet, price comparison websites will compare value for money with internet speeds. Check these prices every month or two to make sure you’re on the best value deal.
Schemes and grants
Wherever you’re based, you’re likely to be subject to a number of federal or state-based business incentives that may help you reduce your costs or boost your profits. For instance, many regions offer tax cuts for businesses that demonstrate a commitment to reducing their carbon footprint or those that can show that they’re benefiting their local community. Other schemes support young businesses, small businesses, or those which are in key sectors. Finally, grants are often offered, interest and tax-free, to promising firms. All of these could help you keep your costs down – so search online to see which you might be able to take advantage of.
It might seem like a no-brainer, but you should never have too many staff working for you – with one or two always twiddling their thumbs with little to do. Over the course of a year, you’ll be paying these staff members tens of thousands of dollars. If they’re not producing more value for you than you’re paying them, you simply need to make the business decision to make one or two workers redundant. The other option is to drop workers down to part-time or freelance. This can help you keep shifts flexible to suit peaks in business activity.
Keep the costs of running your business down by following these four key pieces of advice – designed to make your life easier when you’re setting about o slash your overheads.