Running a profitable business is all about two
things: making as much money as you can and spending as little as possible.
Less experienced businessmen usually focus on the first aspect, often
underestimating the costs of running a business. This, however, is a grave
error, which can end disastrously. In order to prevent this from happening to
you, here are some ways to cut the cost of your business.
Power Pooling
In most cases, your business will be a major
power consumer, and your electricity bill will alone make up a significant
portion of your monthly expenses. Major consumers usually get various kinds of
benefits, but the curse of SMBs is a fact that they don’t qualify here either.
This is why it is not uncommon for several smaller businesses to pool their
expenses together for everyone’s advantage. Furthermore, as a power user, you
will be a force to be reckoned with, which means various power suppliers will
have to take you seriously. This gives you the upper hand during the price
negotiation, which can allow you to save even more.
Use Freelancers
If the nature of your job doesn’t require highly
skilled workforce, it might be for the best to hire freelancers. Sure,
when you are constantly overburdened with work, it is usually better to have an
in-house team, but if the amount of work you do differs by season, freelancers
can save you a lot of money. This makes your hiring and firing policy much
easier, as you can hire freelancers for the duration of a given project and
only pay them for it. In this way, you will avoid paying people to sit idly.
Turn to Free Software
Another thing that can help you significantly cut
costs is turning to free software. Every computer in your office has a plethora
of software you need to pay for, starting from standard OS which is usually
Microsoft Windows. Instead of paying extra, you can turn to Ubuntu, its
open-source alternative. Sure, some may claim that Ubuntu is a bit less user-friendly,
but the price difference more than makes up for it. However, even if you decide
to stick with Windows, you don’t have to use absolutely all Microsoft’s
features. For example, you can always get Open Office instead of MS Office and
in this way save quite a bit. In fact, nearly every single premium program out
there has a free alternative. If all
else fails, you can always try and get the work done in a limited timeframe
that some premium program trial periods offer.
Knowing When to Outsource
Finally, you need to think of outsourcing. Even
though some businessmen draw the line between this and the use of freelancers,
it is in no way the same thing. For example, if you decide to do a particular
job in-house, simply hiring people is not enough. You need to train them for a
specific line of work they are going to be in, which takes time (and even
expensive courses). Furthermore, it also means you might have to buy some
industry-specific tools and machinery like cherry pickers
or similar hydraulic cranes. For some businesses, this decision may not be
profitable enough, but for others it can create a significant boost in
productivity. This makes the choice whether to outsource or not quite
subjective.
Where there is will, there is always a way and,
if your main goal is to save money by cutting your business costs , there are
more than few ways to do so. All you need to do is do your research on the
topic and do the math to see what pays off most. Most of these equations are
situational, and besides, no one knows your business like you do.
About Author: Diana Smith
About Author: Diana Smith
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Business