Running a small business entails keeping costs down while making sure that operations and the business doesn’t suffer. A lot of small businesses capsize in less than five years since they often get buried in expenses and suffer from a lack of capital. The key to preventing this from happening is cutting the dead weight. Here are five cost-effective solutions that will help slash costs for independently-run small businesses.
Go Paperless
You will save money on postage, stamps, ink, and paper. Find a software solution that digitizes processes like billing, generating invoices, and filing paperwork. This will streamline operations, save time, and minimize costs. Even a small family-run business that has been running for years will benefit from digitizing paperwork.
Switch to Cell Phones
Many small businesses still have a landline phone. Getting a cell phone that’s used exclusively for the business will reduce costs and also make your work hours more flexible. A voice over IP will ensure that you don’t miss calls.
Consider Telecommuting
While brick and mortar stores and restaurants will still have to pay rent and upkeep, other businesses could all be scaled down in terms of physical space. If you can get at least 50 percent of your staff to work remotely, you might be able to rent or lease a smaller place and save on operating costs.
Buy in Bulk
Determine what raw material, supplies, and inventory you can buy in bulk. It drops the price per unit and saves time spent in restocking.
Buy Used Equipment
If you own a clothing store, buy used mirrors, mannequins, and display cases. This will save you a lot and if the equipment is in good condition, your customers won’t know the difference. Determine what kind of equipment you need for your business and see where you can source them at lower prices.
Negotiate Lower Prices
Bargaining down price points for raw materials is crucial in cutting costs but is easier said than done. Work on building strong work relationships with all your vendors so that they see you as a valuable customer. Then negotiate for lower prices so that you can cut costs.
