Scroll Top

10 Effective Cost Reduction Tips for your Business

Many small businesses work on a very tight financial base and business owners find that when they try to implement any cost-cutting measures in their company, it impacts the efficiency of their business. But all’s not lost and there are a number of effective ways to reduce costs in your business without affecting its efficiency; take a look at how:

#1 Relook at your bank account

Even today, most banks want to get new accounts and you need to check whether your current bank offers good business savings accounts rates. By reviewing your bank account, seeing what rates you are getting and what other banks are offering, you may be able to save hundreds if not thousands of dollars annually. You can easily channel that money towards various customer generating strategies such as marketing etc.

#2 Make efforts to reduce or even clear all your credit card debts

If you have assimilated business expenses on your credit cards, then that becomes a significant waste of money. Most business credits cards in Australia charge a minimum of 16% interest per annum; and just like personal finances it’s a good idea to move any additional cash you may have towards clearing your credit card debts, rather than leaving the money lying around in your accounts and having the debt outstanding. Many companies also offer deals when you open a new credit card account and transfer the balance to that account.

#3 Reduce your energy bills

Today, there are a number of utility comparison websites where you can move suppliers without too much hassle. Not every business in Australia has a choice of energy provider, but if you do, it’s important to be armed with the right knowledge. Shop around, understand your bill, and find a supplier that would provide you the best tariff plans. In order to work out what the best deal for you is and how much you will save, you have to analyse your consumption, your bill and the prices you are paying. Once you have collated this information, you should scope the market for the right offer based on your location, consumption and tariff type. Switching your business’ electricity & gas suppliers may help you save up to 50% on yearly costs.

#4 Change your broadband supplier

The cost of broadband has dropped dramatically over the past few years and businesses can get very good business broadband deals at very low monthly subscription rates. Like residential broadband, it’s pretty easy to switch especially if you are nearing the end of a deal. You should make it a point to contact your broadband provider to see how much you can bring down your monthly broadband cost. Most companies would want to retain you as a customer; so it may just be worth your while suggesting to them that you’re considering switching providers, to see what they are willing to offer you. It’s also best not to sign up for a very lengthy contract as you may want to switch providers in the future.

In addition to all these things, it’s also a good idea to shop around for new insurance products; like your energy suppliers, you can check insurance comparison websites and get quotes. Policies and their terms and conditions can differ significantly and it’s vital that you peruse these in a detailed manner before making a decision to switch. Hire the services of a good accountant

For effective and sustainable cost reduction opportunities & efficiencies that will increase your bottom line, contact the experts at Benchmark Cost Solutions at this number – 02 9525 0777. If you prefer, write to us at this email address, and we will revert quickly.

Thanks for reading,
Benchmark Cost Solutions Team
02 9525 0777

Leave a comment