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How to Cut Costs Without Cutting Corners

Even with the economic climate slowly improving, small business owners are still vulnerable and, as a result, finding ways to cut costs is essential for many. Cutting unnecessary costs often helps business owners to stay financially afloat and even built a substantial amount of money that will help to see them through unexpected difficult times. In short, cutting business costs can be a key factor in ensuring your business achieves long-term success.

how to cut costs

photo credit: Reuben Whitehouse via photopin cc

When cutting business costs it is important to keep in mind that if you start trying to cut costs by cutting corners it could have a negative impact in your long-term business operations. There are, however, simple and safe ways of cutting costs.

Cut costs by becoming energy efficient

One of the most simple ways of cutting costs is by reducing the amount of energy your business uses. The money saved by turning off lights, computers and photocopiers when not needed or at the end of the day will soon add up.

Heating is another big factor when becoming more energy efficient and, if possible, try and choose a building that is well insulated if you work in a cold region and try and not over use the air-conditioning during summer. Some business owners are even looking into buying energy efficient appliances, such as coffee markers, as ways of saving energy and money.

Outsource

There are many aspects of your business that you could consider outsourcing that will not impact negatively on the way your business operates. Virtual receptionists have been popular for years along with using online HR software, both of which if you research into using reputable companies can save your business thousands of dollars annually.

Alternatively, you can offer clients additional services if you find good and efficient freelancers who you can outsource projects to, this will not only save you money by not having to recruit additional employees, but will also help you to grow your business. The outsourcing industry is now well established so there are many options available that will help to improve your business.

Change supplier

How often have you changed suppliers? If the answer is not often, or even never, start looking around and seeing what alternative suppliers are out there. By changing suppliers you may find that you will be able to save money through lower tariffs or special discount deals. It might also be worthwhile speaking to your existing suppliers, as they might be willing to offer you a discount in order to retain your custom.

Equipment

As technology continues to advance rapidly your equipment can soon become outdated, although this won’t immediately impact your business it can quickly start to hinder your operations. Fortunately, instead of constantly buying new equipment you can lease it.

Leasing for equipments has two benefits; the first is that you obviously don’t need to spend large sums in one go in order to purchase new equipment, the second is that you can often upgrade when new versions are released or after a set time period. This is one of the most cost-effective ways of ensuring that your business has all the equipment needed to operate effectively, while also enabling you to keep up with technological advances.

Building leases

Although the economy is picking up there are still a lot of buildings and office space left empty. Landlords want to fill these, so if your building lease is up for renewal use this as an opportunity to look around and see if you can get a cheaper lease somewhere else. As with suppliers by looking around and asking for deals, while speaking to your existing landlord, you might be able to reduce your lease.

About the Author: This article is written by Derin Clark a writer, editor and blogger.

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