Sick Of Cost. Here Are 6 Easy Steps To Reduce Business Cost

Businesses are there for profit and entrepreneurs/ owners are always trying to find ways to improve the numbers in their Profit Loss Accounts.

Expenses can be major issues in reaching the profits at later stage of operation despite of what the owners expected on profits at starting ups their business.  In Small Businesses expenses are critical to control in time, failure may have serious impacts.

Money as they doesn’t grow on trees but surely that a small effort to reduce the cost can make that money grow in your business.

Here are Six Easy Steps  To Reduce Cost :

1) Employee Hiring- Go Flexible

Hiring and training an employee is costly and needs time by the management. Human Resource costs are the major fixed cost in any enterprise. Absenteeism, firing and layoffs become more costly in turns. Nowadays freelancer and professional are rendering their services for the time that you want and it can be cheaper for businesses people working from remote if the task/ job involved some time only for operation in professional manner. You can hire Web Designer, Marketer, Content writer, Consultants and Graphic Designer   at less cost than employing them for the full time.

2) Get The Interns:
Agency cost can be more expensive but with the new talented students graduating from universities companies can hire them as interns for 3-6 months by contacting universities/college directly or placing advert with them. It is more beneficial in start ups when the cost is important. In time these interns can be full timer with the right candidate selection, saving you lot of HR expenses for initial 3-6 months, the same amount can be gone by paying a full timer.

3) Don’t’ Delay Financial Charges:
Sometimes due to busyness or ignorance many businesses ignore the financial charges.  Purchasing of supplies or stationeries through business cards come along with an interest for late payments. Not paying on due dates can impact the business with interest charges that can be eliminated if paid on time, saving your cost lot more.

4) Improve Your Phone Line Cost
Keeping too much telephone lines can be expensive. An intercom connection in the business can save your telephone bills. Sometimes it’s cheaper to get a business mobile phone with low tariffs instead of keeping a landline.

5) New Advertising:  Get Social
Nothing can be sale if there is no stimulation to the buyer. Traditional ways of advertising are now being replaced by Social Media at low cost with high returns. Setting up Facebook, Twitter, Linkedin doesn’t cost. Awareness is important for branding and for your products it can be cheaper with Social Media Marketing.

6) Reduce Bulk Buying:
 Many businesses buy in bulk with a concept of price uncertainty of supplies or holding stocks in warehouse in emergency. These bulk buying can be more costly for maintenance or by overstocking. It is better to buy only what is needed by the production and operation saving your cash flow for other purposes.

Improving on these issues can save lot more money. Whilst in economic downtowns, when the business is too tight and cash flow is important it is better to be wise in terms of expenses. 

Well, Elisabeth Marbury said 

"The richer your friends, the more they will cost you."   HAHA


-Digvijay Thapa


Digvijay Thapa help small business grow. Get connected via https://www.facebook.com/DigvijaysForgottenSutra

(The writer doesn't take any responsibility and liability of using his blog contents to implementation  by anybody in their business, in doing so by any entrepreneur  will be at their own decision  and will be doing by their own test and analysis results and writer doesn't have any involvement and liability in their action)