When small businesses want to reduce costs, the standard strategy is to lay-off staff. This is because about 70% of business costs are related to staffing and it’s but natural that companies will keep this strategy at the top of their list when they are looking for ways and means to cut down expenses. However, laying off personnel in a small business kills morale and is detrimental to the overall working of your company. When you have a skeleton crew handling all other tasks and jobs, it impacts the quality and speed of service delivery. Here are some cost reductions tips in which you can improve your bottom line and save money without cutting jobs in your small business:
#1 Sublet excess office space
If your office space is larger than what you currently need to run your business, you should consider subletting a section of it; this can bring in some income. Advertise that you have some office space available to contacts and clearly mention what types of businesses you would be okay with subletting to. Alternatively, you can contact potential subletters and check whether they need any additional space.
#2 Share staff
If you have any department staff that could efficiently support some other business, it’s a good idea to contact other companies within your network and offer services such as accounting, bookkeeping etc. You can also consider whether there are businesses that could provide some service for you. It’s common for large companies to outsource certain activities such as Information Technology.
#3 Alter your marketing focus
If you have a good existing customer base that likes your product and are loyal to your brand that is something you should leverage. Most companies agree that’s its far cheaper to retain a customer rather than acquire a new one. If a large chunk of your marketing dollars are being channeled into customer acquisition, consider shifting focus and marketing more to your existing customers.
#4 Consider telecommuting as a work option
Many companies big and small recognise the benefits of telecommuting. It’s not uncommon for small businesses to overspend on office space; in rough times, telecommuting becomes an ideal and practical solution that can ease your financial burden. If you don’t require employees to work off the same premises regularly, telecommuting is a great way to reduce costs and save money. Aside from money savings, you will find that when you provide employees a flexible work environment, it helps you attract the best talent and retain existing staff members. Market research has proved that almost 80% of workers across industries consider the ability to work out of home a perk.
#5 Choose promotional articles with care
It’s common for businesses to send out greeting cards to their suppliers and clients. But greeting cards can be quite expensive. You can opt for promotional items such as desk calendars that are considerably cheaper. Aside from this, they have longer shelf lives than just a greeting card and carry your brand message for longer as well. You can order these products in bulk online and get the printing done in bulk as well. They are a great tool in any marketing strategy. Aside from all these solutions, you can hire interns for some jobs, shrink business travel-related expenses, use corporate discounts at car rental companies, hotels and airlines. Use frequent flier miles & rewards that credit card companies offer and lease large equipment rather than buying it outright.
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
