In a struggling economy, every small business proprietor seeks to increase profits, save money, and increase productivity.
The good news is that there are numerous notions available in books and articles. In today's difficult economy, however, you need inventive and novel ways to save money, not just the apparent ones.
Consider the ten cost-cutting strategies listed below for your small business.
Go paperless
By operating a paperless office, you can reduce storage costs, printing expenses, and overall inefficiency. By digitizing documents, you can easily send and share information, saving time and money for your business coaching brisbane.
Utilize a balance transfer with no balance transfer fee.
Transferring a balance from one card to one with an introductory APR of 0% is an excellent way to save money on interest charges and reduce debt. If you had a $5,000 balance on a card with a 17% APR and transferred it to a card with a 0% intro APR for 15 months, you would save $862 in interest alone!
Lease equipment
Consider a lease to prevent the large upfront costs associated with purchasing equipment. In addition to conserving your company's cash, you can also save a significant amount of money on repairs, enhancements, and maintenance, as many lease agreements cover these costs.
Collect advance payment
When extending credit to consumers, consider collecting a portion of the purchase price in advance. This will help your business reduce risk, enhance cash flow, and reduce collection costs. For example, you can require a 25% down payment on all future purchases made from your net 30 account holders.
Request the discount.
Depending on the terms, the suppliers you deal with may offer quantity discounts of 50% or more. You might be able to satisfy these requirements and receive a discount. To find out, inquire about discounts and the requirements for earning them. You may be eligible for anything from an interest-free loan in the form of vendor credit to a substantial early payment discount.
Change vaults
As a result of all the new regulatory changes, it is unsurprising that banks are seeking to generate more income from fees. Greg McBride of Bankrate puts it best: “As consumers, we are not hostages to these higher fees, but we must be vigilant and proactive to avoid them.” Do everything possible to avoid fees such as ATM surcharges, non-sufficient funds fees, and, most recently, debit card fees. If transferring to a different bank can result in significant cost savings, it may be exactly what your business needs in order to save money.
Think about integrated services
Some businesses offer integrated phone, cable, internet, fax, and web hosting services. When your business bundles two or more services from the same provider, it can save hundreds of dollars annually.
