Cost cutting has become the new mantra for many small businesses. However, how effective are some strategies? You would be surprised at the amount of savings that can made in the most unlikely of parts of the business. Here are three indispensable tips.
1. Saving On With Suppliers
Compared with winning or retaining new business, saving money on the supply end is often downgraded or neglected. This side of the business is just as important, and can affect the bottom line just as much. Get wise about the needs of your small business. Then research and compare the market for the best deal. Don't take heed of other people's advice about smart phones or cloud computing, if you think they know better. Instead remember that you don’t need to know about every product or service, you just need to know about what your business requirements are, and then fill them in the most cost-effective, value-adding way possible.
2. Outsource Where Possible
Outsourcing business functions such as reception, book-keeping, HR, payroll and even customer service, can offer real saving opportunities for small businesses. Integrating these arms of the business, through a central online portal or CRM can bring all of the data together into a cohesive unit. So long as its project managed well, outsourcing can work for a small business; freeing up time and reducing overhead costs.
3. Reduce Insurance Costs
An often overlooked but absolutely essential part of a public-facing small business, is having proper business insurance. This protects a business from being legally liable, if a member of the public has an accident that results in injury or death on your business' property. It also protects against loss or damage to third party property that arises out of the operation of your business. There are plenty of insurance providers on the market, but always search for the most competitive quote. Ideally, obtain 0% interest for the first 12 months of the contract, to free up cash flow. It's a canny investment that could save a lot of headache later.
Cost-effective business or tradesman insurance, outsourcing and supply end measures; are three ways that small businesses can learn to not only survive, but thrive, in uncertain times.