The top 3 tips to reduce your small business costs
If you’re running a small business, it’s important to look for ways to cut any unnecessary costs, not just focus all your efforts on increasing your revenue.
After all, even if your sales are flat, if you can at least cut your costs, you’ll increase your profit. And if you can both cut your costs and increase your revenue, then your business will thrive.
Here’s our top 3 tips for reducing your business costs.
Tip 1. Outsource
This may seem counterintuitive. After all, when you outsource, you pay someone to do a task. The key to saving money when you outsource is to pay a specialist to do that task more effectively and quicker than you or a full-time member of your staff can. If you do, you’ll save money.
Bookkeeping is an example of a task that every business needs to do, but it’s usually not worthwhile to pay a full-time staff member to do it for you (or to spend time trying to do it yourself).
Tip 2. Negotiate with your suppliers
It’s important to remember that you’re a customer to your suppliers. There’s an old saying that ‘you don’t get what you deserve, you get what you negotiate’. It’s especially true in business.
If you’re an important customer for your suppliers, they’ll be keen to keep your business and they might do you a special deal on your orders. It’s certainly worthwhile asking the question, especially if you have other suppliers you can use instead.
Tip 3. Implement energy-saving initiatives
It’s possible to not only cut your energy costs as well as reduce your environmental footprint by using energy-efficient appliances or using LED light bulbs instead of standard incandescent ones.
How we can help
We can also help you with any bookkeeping support services that you may need, no matter what type of business you have. We currently have clients in a diverse range of industries in South Australia, Victoria and New South Wales.
Contact us today to find out how we can help your business!