Cutting business costs is no easy task. Fortunately, there are a few ways you can save money before you consider more severe cost-saving measures.
Take a look at these four cost-control strategies:
1. Review your facility costs
If your company owns expensive office space, consider moving to a less costly location that won’t mean losing clients or business.
If a move is out of the question, share office space with a compatible company. What you save in shared operating costs goes directly to the bottom line.
2. Determine if sale-leaseback arrangements are right for your company
These enable your company to generate funds for operations and transfer the burden of ownership to the buyer, from whom you rent back the office space.
3. Recalculate the cost of supplies and inventory
Analyze the cost of materials and supplies. Are you stocking too much material too far in advance?
Can you arrange to have products shipped directly to customers by your suppliers?
Periodically conduct a competitive review of suppliers. Select those who can deliver good quality and service at the lowest cost possible.
Also, you may not have to pay full price; inquire about volume discounts.
4. Consider outsourcing
Outsource certain activities that consume a great deal of time and resources or are prone to errors.
For example, you may be able to have payroll processing done by a vendor at a fraction of your current costs.
Have questions about cutting business costs? Let’s talk!