4 Simple Ways to Cut Business Costs
When you’re the owner of an SME, keeping your costs low is vital. For many, low and manageable costs are the difference between a business succeeding, or ceasing to trade. In this post, we take a look at 4 simple ways you can lower your business costs.
#4 Lower Your Marketing Costs
Marketing costs are one thing that can really spiral when you’re running a business. All businesses want exposure, and marketing is a great way to achieve this. However, when you’re a start-up, there are much better ways that you can spend that budget.
For example, instead of large marketing campaigns that cost thousands, you could set up Facebook and Twitter accounts for your business. These will increase your business’s exposure free of charge.
#3 Sell Unwanted Goods
If you’ve got any IT equipment, building materials or even old cash registers that your business isn’t using, then sell it. Your business is sitting on wasted money that could be used elsewhere.
As well as selling on eBay, Amazon and other partner sites, you can also sell to specialists. For example, if you upgraded your servers, you could sell your old ones to somewhere like Pinnacle Data. Specialists are always a great option and could offer a higher price than the open market.
#2 Only Pay for What You Use
With every item in your business, you need to ask yourself: “Do we use that?” If not, it’s costing you money.
As your business grows and expands, not only will you acquire more technology, but you’ll also acquire a number of memberships to organisations and subscriptions.
You must review these periodically, because, if not, you could be wasting large sums of money on subscriptions that you no longer use. To counteract this, you should hold a quarterly review meeting for this process, discussing each outgoing individually and coming to a group decision about whether it is still required or not.
#1 Consider Premises Carefully
Finally, you should seriously consider what will likely be your largest expenditure: premises. Remember that you pay for every single square foot of space that you rent or lease, so minimising this is highly advantageous.
If you’re not sure about whether your business is ready to take the plunge and hire a premises, then look at alternate options. Something like a self-storage unit can be a good option. It gives you a low cost base that’s away from home, without the full expenditure of a warehouse or physical shop.
So, there we have it. Follow these tips and your business will keep costs low, increasing the chances of success.