As the world economy slows down perhaps now is the time to look at quick and simple way ways to cut your business costs so that your business is leaner, meaner and more efficient for the tougher times ahead.
Tips for cutting your business costs include:
1) Downsize your premises or move to a more cost effective location. Many small businesses never think about changing their location once they are set-up. With the way the road systems are now changing perhaps the reasons for you setting up in your current location no longer apply anyway.
2) Change your utility supplies. Shop around and I believe that you will be pleasantly surprised at what you can save annually.
3) Raise invoices immediately the goods leave the premises and offer early payment discounts. Send out regular statements and reminders once payment is due. This will help to improve your cash flow.
4) Evaluate every single device that uses energy. Older equipment like radiators and fridges are so inefficient that you can cover the cost of replacement within 6 months. Simple changes like using energy saving light bulbs and sensor lights instead of permanent lighting could save you a significant sum of money annually.
5) Ensure that your premises are properly insulated so that very little heat escapes out of your building. You might be able to get a grant to help cover the costs.
6) Downsize your company vehicles and help the environment at the same as cutting fuel and taxation costs.
7) Use electronic means of communication wherever possible including sending out your invoices and statements.
8) Examine ways of outsourcing basic administration tasks like payroll and accountancy. This will reduce the numbers of staff you need plus allow you to use the space saved on stock holding and increasing the area devoted to marketing.