How to Cut the Costs of Your Business in Tough Economic Times

Mary Davis In tough economic times managing the finances of your business, especially if it is a startup, is often no easy feat. For this reason, it is important to find ways in order to make those valuable savings which will undoubtedly keep your company afloat as the economy starts to recover. With this in mind, here are great ways to help you cut the costs of your business in the current economic climate.

Consider going green
This may require an initial environmentally-friendly investment but in the long run you are likely to save a great deal of money whilst giving your business a positive company image. We recommend that you consider purchasing CFLs instead of regular lightbulbs, investing in carbon-friendly company cars and ensuring that your offices are well-insulated in order to save on your electricity and heating bills as well as on your road tax.

Employ freelance workers
By using freelancers you will be ensuring that you have enough staff during peak working periods however do not need to pay salaries when there is little work to be done. This tactic will mean that you always have the right size workforce when required and do not pay unnecessary salaries during idle periods.

Re-considering your office
By re-considering your work space you may well be able to save hundreds each month. Is your office space crucial to the functioning of your business? Consider working from home or from a library or café with wifi facilities. If you employ a number of other workers would it be possible for them to work from home too? In case you do need the office, consider what things you can live without and what things are must-haves. If your office is already furnished you can consider selling some stuff online in free-classifieds websites, but if you happen to have an unfurnished office you can check these same websites to buy used furniture and equipment. Although some websites seem to have cheaper products, make sure you choose a local website. There are plenty of free-classifieds websites like this one where you can look through for great deals on furniture for your office. Remember to always keep an eye on shipping costs! It can’t end up being more expensive than buying it new!

Discourage the use of credit cards
Of course making a sale is a step in the right direction, however when customers pay with their credit cards the profit that you make is likely to be reduced due to the many fees associated with this form of payment. Why not offer an incentive should the customer pay in cash? Consider offering a cash-back bonus in order to maximise your profit margins. Clearly if you have an online business this won’t be possible, you can check out what some services like PayPal can offer you for online payments.

Stop using printers
It is amazing how much a company can save on a monthly basis if it cuts down or does away completely with the use of printers. Ink cartridges are expensive items and just think about all the paper you will save? Try to do as much as you can digitally and use printers for essential items one day each week.

By employing these great tips you will find yourself well on the way to making some significant cash savings within your business. These tough economic times will not last forever but in the meantime there are many ways in which you can save in order to invest in the future. Remember a penny saved is a penny earned, cutting costs today is as important as good marketing, and one of the main concerns of today’s businesses.