All entrepreneurs are on a small budget. And any idea that helps in cutting costs is usually welcome with open arms. The reason is very simple: Each penny saved adds up in the savings deposit. A sizable savings deposit will always ensure that you will be able to tide over the bad and rough times without any problems.
To save money on business costs, you should move into a cost-cutting mode. To help you with cost-cutting, here are five methods which can be put to good use:
- Office Space
The best way to cut down on business costs is to look for premises which are cheap but offer easy access to your clients and customers. This saving incurred has a huge impact on your savings. Buying a premise for your office space can help you save on rents that you would have coughed up every month. Every entrepreneur makes use of the cheapest accommodation that one can avail, helping you save to the tune of many tens of thousands per year. Closeness to the clients, customers or business areas always ensures that you do not spend a fortune on transportation of your goods. Design your office space in such a way that admits more day-light during your working hours. Saving electricity can always help you save on electricity bills and this saving can be to the tune of 50% as compared to depending solely upon electrical lighting and heating.
One of the most important aspects of increasing business is advertisements. But this is also undoubtedly the single most money guzzling aspect of the business. But fret not! You can cut down on advertisements without affecting your business. You can start a referral system and reward your loyal customers in terms of services, which are inexpensive ones.This way you can advertise your business by a word-of-mouth campaign, which is very effective in getting you more business. Another way to cut costs on paid advertisements is to reuse them. This way you do not have to pay to ad-film making houses for making newer ad-films. Use social media to the fullest. This ensures that there is a maximum outreach of your business. Moreover, they are free or require you to spend little
3. Furniture and Electrical fittings
The office furniture and electrical fittings are one the unavoidable items in setting up an office. It is important to understand here that the furniture and electrical fittings have a definite lifespan and spending a fortune in acquiring those is useless. You can buy recycled or second-hand furniture at a far cheaper rate as compared to the new ones. The second-hand or refurbished furniture will cost you around 60 –70% less than the new office furniture. While setting up your office, ensure to invest in the electrical fittings that consume less power. And you will be pleasantly astonished to find that these electrical fittings pay for themselves in a relatively lesser time. This happens because you save almost around 70% using such fittings. Use LED lamps instead of CFL bulbs. For the same lumens, you incur lesser expense on watts and lesser expenses on the electricity bills of your office
To immediately cut the costs, use software that is free of cost. Such software is generally available under General Public License and you do not have to cough up a hefty fee for using such software. You can switch over to Linux environments which are no less easy to use as compared to licensed version of widely popular operating systems
5. Hire Interns
Hiring interns for your office has some immediate advantages: you do not have to pay them an equivalent of your regular employees; they are easier to train and do not go about throwing tantrums in the office and hence easier to handle; they gain a valuable experience which can help them become successful later, so they will definitely put in some hard labour.
So do not waste time, as faster you implement these ideas, better would be your gains!