During a recession, every penny counts. Cutting business costs is a difficult process that requires careful evaluation. The techniques you use for lowering costs can have a direct impact on the overall performance of your business. Consider these five tips for cutting costs while maintaining the standard of excellence that your customers have come to know and love.
Relocate (or Explore Relocation as a Means of Negotiation)
Many small business owners lease or rent property to house their company. One of the easiest methods of lowering costs is to relocate to a property that is more affordable. No property owner wants to see an excess of empty offices, but vacant buildings are abundant in this recession. If you explore the possibility of relocation, you might also find that your current landlord is willing to renegotiate for a lower rent. Either way, you are looking at cutting costs in the area of rent significantly.
Get Rid of Excess Baggage
Does your business pay for additional storage space? Or are there unused spaces that are serving as storage space? Cutting business costs is easy if you sell excess items and eliminate extra storage fees. If you own the property your business is located on, you can also rent out additional space to other small businesses if you clean up unused space and get rid of excess items.
Let Employees Teach Each Other
If you often send your employees to professional development seminars or special industry functions, you can save a lot of money by choosing one competent representative from your staff. Sign the representative up for the seminar or function and arrange for him or her to design a report to share with everyone else. This is a great means of cutting costs because you only have to pay for one person and reimburse one set of expenses. The report session will also serve as a valuable professional development opportunity for your employee.
Cutting Business Costs through Office Supply Control
Cutting business costs is especially difficult when it comes to office supplies. The most efficient way to protect your investment in supplies is to lock supply cabinets. This eliminates overuse of office supplies, and they will be less likely to disappear.
Evaluate Your Technology Needs
During a recession, staffing numbers tend to go down and so does your need for excess technology items like company cell phones, additional phone lines and voicemail boxes, and high-tech copy machines. You’ll find that you are capable of cutting costs by renegotiating phone and internet services, eliminating excess communication lines, and downsizing to a moderate copy machine that will still get the job done. These small steps for cutting business costs will have a snowball effect on your bottom line because electricity bills will also go down.
Lowering costs for your small business can make or break you during this recession. Return to the drawing board and reevaluate different areas of your business regularly to make adjustments for the changes in consumer and economic trends.