Cutting costs is a priority for all small business owners because overspending is one of the main reasons that businesses end up in financial trouble. There are a lot of different ways that you can do this but you’ve got to be careful that you’re not cutting important costs. For example, you could save a load of money by not spending anything on marketing, but that’s obviously not a good idea because you’re not going to make any sales if you do that. The good news is, you can easily cut costs without making any sacrifices because there are plenty of business costs that are easily avoided.
Stationery
People never really think of stationery as a big cost but a big office gets through a lot of it. If you actually added up how much you were spending on stationery every year, you’d probably be quite surprised. But the thing is, you don’t really need to use much of it at all because it’s so much easier to do everything digitally anyway. If you start using cloud based sharing software to distribute documents and work on them instead of printing out loads of copies, you’ll save a lot of money. It also makes things easier for your employees because they can organize and access documents a lot easier. Getting rid of paper saves you money on stationery but it’ll also save on things like copiers and printers which often need maintenance so going paperless should always be a priority when you’re trying to save money.
Workplace Injuries
This isn’t a regular cost but if somebody is injured at work, you’re going to have to pay out a lot of money in work accident compensation. In some cases, a big payout could land you in some serious financial trouble, but it’s an entirely avoidable cost. Workplace injuries are usually caused by negligence so as long as you keep up with health and safety regulations properly, you shouldn’t have to cover the cost of compensation at all.
Replacing Products
If you’re sending out products and they arrive damaged or they go to the wrong address, you’ll have to send out a replacement. If that happens, you’re not making much profit at all on that product. It’s inevitably going to happen occasionally but if it’s a regular occurrence, you’ve got a problem somewhere. Putting a bit more money into your packaging and making sure that you’re using a good courier service will save you a lot of money because you don’t have to replace products all of the time.
Oversized Offices
When you’re hiring an office, you need enough space for all of your employees to work effectively but sometimes, people go overboard. These days, with new technology that allows remote working and virtual offices, you don’t always need to pay for a massive office space. Think about how much space you actually need and don’t pay for space that you’re not going to use.
These are all avoidable costs that you can cut without making any sacrifices to your business.
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Vinh Van Lam & Stuart Horrex
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