The Best Ways for Growing Businesses to Cut Costs
The profitability of your company is about more than just making money for owners/investors; it’s about supporting all the employees who dedicate their time and energy toward making it a great place to work. Whether you are facing branding challenges or simply want to help your company make its quarterly goals, there are a lot of ways to help businesses cut down on costs – without losing staff. Here are just a few of the most impactful ways your business can save money right now:
Do Your Research
Look for good deals on new agreements before signing anything. New software might look great at first glance, but many companies don’t even use all the bells and whistles. Choose only what you need and select a plan that works for your office.
Ask to renegotiate any existing contracts you currently have in place. If you notice that another company offers the same service or product for a lower price, you can ask for the same discount. If they refuse, it might be time to make a switch so you can get the lower price from their competition. You win either way!
Consider Your Space
Not all successful companies exist in trendy business parks. Reach out to your property management company to see if it’s possible to renegotiate your lease. If you are open to a change, take advantage of lower real estate costs in a new end of town or look at airplane hangars that could be converted into office space. All of these could help save money long-term.
Invest in Proven Results
Don’t waste money on advertising that doesn’t deliver. Newspapers, for example, have no way to accurately measure the demographics of their readers or the effectiveness of their ads. Instead, advertise on social media, through Google or via Direct Mail. You’ll have proven results with data that demonstrates the success of your campaign. This will help you more accurately spend your advertising budget to see a higher return.
Invest in every opportunity to make a good first impression on your customers. Carry business cards with you at all times and ask for referrals wherever possible. Branded products like hats, t-shirts, drinkware, pens, and more can also help customers remember your business name.
It’s important to carry as much business insurance as you can reasonably afford. You can, however, cut insurance costs in other ways. Check to see if your insurance provider offers a price break for bundling services and audit yourself regularly to make sure you aren’t insuring assets you no longer have. you could also consider increasing your deductible to reduce your premiums. A qualified insurance broker can help you find the best deal for your company’s needs.
Consider outsourcing your warehousing needs. This eliminates the need to pay for extra office space and saves on resources that might otherwise be spent managing and maintaining your overhead. Look for warehouse and storage services that include packing and shipping. For example, our warehouses pack and ship nearly everything within 24 hours of receiving receipt of the order.
Stay apprised of any new wage laws or regulations coming down from either the state or federal level. This can help your business prepare for additional expenses or bookkeeping updates that need to be made so you can remain compliant with new policies. This can also help your company avoid unnecessary penalties in the future.
Write Off Debt
It might be time to reach out to creditors and ask them to write off a portion of what you owe. Draft a letter with your corporate lawyer that explains your plan to become profitable in light of reducing your debt load. This could include a frugal new business plan or a new investor who will only invest if your company reduces its debt. This strategy sounds risky, but with a good lawyer on your side, it’s possible to convince a creditor to accept less money so that you can avoid bankruptcy.
Don’t settle for subpar results every year. Take your business into your own hands with these tried-and-true tips to get better profits without losing employees. Contact us today to learn more our warehouse and fulfillment services or office supply delivery!