With a struggling economy, small business owners are looking for ways to increase profits, improve efficiency, and save money. The good news is there are many helpful ideas that you can find in business books and articles. Instead of covering the obvious ones, we need new and creative ways to save.
Here are some improved ideas for your small business cost cutting strategies:
If you apply this, you can be sure to lower storage costs as well as printing costs. You will also be able to improve the overall efficiency of your small business by running a paperless office. By scanning documents, you can now send and share information easily and effortlessly and at the same time, you get to save your business time and money.
Lease your equipment.
This can be done to avoid big and upfront costs you have to face when purchasing equipment. You don’t just conserve your company’s cash, but you can also save a substantial amount of money in upgrades, repairs and maintenance since there are several lease agreements that cover these expenses.
Use a 0% credit card balance transfer.
Transferring the debt balance from one card to a 0% one is a great way to save money on interest charges. This also allows you to pay down your debt.
Collect cash in advance.
When you are extending credit to customers, you have to consider collecting a percentage of cash up front with each purchase. By doing so, you will help your company reduce risk, save money, and improve cash flow in collection efforts.
Consider bundled services.
Some companies provide bundled services that include cable, internet, phone service, fax and web hosting. Bundling two or more services from one company can save your business hundreds of dollars every year.
Manage your employees’ spending.
The abuse or misuse of company-issued credit cards can occur among employees at every level. It is important that you set guidelines, activate pre-set limits and alerts, and monitor your monthly spending reports in order to save money and avoid costly mistakes.
Use payroll debit cards.
With a debit card payroll system, your business can definitely reduce its administrative costs. This system eliminates the expenses that go into printing checks, and it also lowers the risk of fraud. According to the Association of Certified Fraud Examiners, this is a major benefit since a high percentage of 60% of all fraud incidents within a business involve the employees.
Whether you are an existing business or a start-up, it is essential in this industry to do whatever is possible to look for new and legal ways to save money. Take action as soon as possible!