10 Ways to Save Thousands in your Business
The Year-End is the perfect opportunity to review your costs and make efficient changes for the coming year.
As the economy undergo ups and downs, businesses & especially SMEs should recognise the ways in which they can cut their costs. When your business is thriving, costs may not be the primary focus however as your business is struggling it is important to understand the areas where you can review your expenditures.
One of the best times to start thinking about reducing your costs is just after the year-end. It gives you the perfect opportunity to analyse the areas of greatest expenditure and those of least efficiency, but it also gives you time to seek suitable alternative providers for the coming year.
Successful businesses will put a primary focus on growth and advancement but remember to keep the costs on check to ensure an efficient path.
Here are ten ways in which you can reduce your business costs
1. Reduction in the supply expenditures
Purchase your office supplies in bulk or wholesale. Visit wholesale vendors e.g. Costco and check prices with other stationary providers.
2. Cut down your production costs
As an owner of a business, you should always be looking for the ways to cut down on your material costs and get maximum benefit from your resources. Has your business grown to the extent that you can now purchase materials from the source? When was the last time you negotiated the prices with your current supplier? How often is your business buying raw materials? Buying too much material too soon can also affect your cashflow.
3. Reduce your financial expenditures
Review your insurance policies, financial bank accounts, and other financial expenditures to save money.
4. Review your international payment methods
If you are dealing with international clients or carrying out currency transfers or sending money abroad, review the costs in doing so. The costs of currency transfer can be checked through the FX margin or spread. Check how much your Bank or FX broker is charging you and compare the costs with other International Payment providers.
5. Make efficient use of time
Optimize your productivity because time is money. Wasting time means you are wasting your money.
6. Make use of virtual technology
You can easily reduce your business costs on meetings and document maintenance by adopting virtual technologies available such as arranging virtual online meetings e.g. Skype, GoToMeeting and making use of document organizers like Google Docs.
7. Adopt free digital marketing methods
It is not necessary that you make use of only paid online marketing tactics. You can make use of social media, email marketing and other digital marketing methods for promoting your business.
8. Keep your focus on limited products or services
If you are a small business owner, the best strategy is to keep the focus of your business on a few products or services. It will help you to be more productive and deliver high quality.
9. Make efficient use of office space
We all want a big office but is it the right size for your organisation? Can your business be operated in a smaller office? If the location of the office is not too important, have you considered moving the office to an area with lower rents.
10. Get maximum output from the skills of your employees
Before outsourcing work review the skills & abilities of your staff. You may be surprised to find they are more than capable of handling tasks for a small incentive which are outside their remit.
If you or your company needs assistance reviewing your Foreign Exchange costs please do not hesitate to contact us.
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