LONDON – BUSINESS – According to figures, many businesses fail. Although there are lots of reasons why this happens, the number one reason tends to be because they spend more than they make and there was a distinct lack of a sustainable business model. The type of business that’s most at risk of making this kind of mistake is the small, local bricks and mortar business. Quite simply, there isn’t enough cash to prop them up when the going gets tough.
If you own a small business and would like to learn of ways you can cut your costs, here are some ways you can do it that won’t be too painful.
- Shop Around for the Best Suppliers
If you put aside some time for shopping around for the best consumables such as office and cleaning supplies you might be surprised at the discounts you can get, especially if you buy in bulk. Cartridge People own brand cartridges, for example, are guaranteed to be the lowest prices in the UK. You may also find suppliers willing to offer discounts based on the length of your business relationship or how quickly you pay.
- Look for Ways to Reduce Energy Costs
Even a small reduction in your energy costs is going to make a difference to your profits. There are many ways you can save energy, thereby reducing the cost. For example, why not invest in energy-efficient appliances or find an energy supplier that offers lower prices? Switching to compact fluorescent or LED light bulbs will also save energy. Making sure doors and windows are tight fitting and switching lights off when there is nobody in a room will also make savings.
- Hire Remote Workers and Interns
The process of hiring and training new employees is very costly, but for the small business owner, there is a much cheaper alternative. Outsourcing specific jobs to highly skilled professionals will save on office space and equipment, and you don’t need to worry about training. Hiring interns is another option, and they’ll often work for free.
- Reduce Paper Costs
Even though we live in a digital age, some businesses still rely very much on paper. It’s possible to reduce your paper costs by moving from paper to digital files. There are some very efficient digital filing systems, such as Google Docs and DropBox you can download for free.
- Consider Bartering or Exchanging Services
It’s highly likely there are other businesses in your area looking for ways to cut costs. Why not see if you can help each other out by bartering or exchanging services? There are even a few online bartering sites that make it even easier.
Running a small business means you’ve got lots of unique challenges to overcome. The burden of high operating costs is one that many others like you have to contend with daily. The changes mentioned above are just a few of the ways you can make a difference and protect your business profit. Avoiding overspending is something you need to make a priority if you want to make a success of your business.