6 Efficient Ways to Reduce the Cost of a Growing Small Business

It’s great that your small business is growing but don’t underestimate the challenges it brings along. If you don’t plan things ahead, it might be too late to get started later. One of the biggest challenges that a budding small business faces is the rapidly increasing production cost. You might become blinded by the satisfaction of owning a successful business and fail to realize exactly how much those incoming projects are costing you. So , here are some effective tips to help you reduce the cost of your business.

how to reduce business cost

Make sure to plan a budget and stick to it

The first thing you need to do is plan a budget. We cannot stress this enough that making a budget and sticking to it can do wonders for a business, especially a small business. Make sure to set aside a specific amount of money for each expense. Do not exceed that limit unless you’re in a bind. That also includes not taking more business loans or using your credit card to purchase stuff.

Pro Tip: it is essential to narrow down your focus. Don’t accept every project that comes your way. Reject it if you don’t have resources for it. But if you’re accepting, make additional budgets for it.

Cut back on office supplies

You might be astonished to know how little random things like paper, pens, clips, ink, snacks and various other objects  can put a dent in your business. Most of these objects are available in abundant in any office and being wasted by employees. Not only printed documents are expensive but they also take up more space in your office. You don’t have to act frugal but make sure you’re only buying stuff you need and in right quantity.

Opt for Refurbished computers and equipment

One of the biggest expenses that a business has to bear is technology, that is computers and other equipment. Without these hardware devices, it is impossible to run a business efficiently. However, they are super expensive. And while you can buy them cheaply from a second-hand shop, but can you afford to sabotage your business and lower production rate because your equipment was being repaired, again?

But don’t worry, you can buy refurbished computers, scanners, fax machines, printing machines and other office equipment at reduced price. The difference between refurbished and second-hand equipment is that refurbished equipment comes with a warranty. There are multiple companies, such as Recompute, that sell refurbished computers and hardware devices. You won’t have any trouble finding them.

Use free or open source software instead of buying them

In addition to the capable hardware, you also need the latest software to run a business. But just like hardware, it is extremely expensive. And more so, because you cannot buy it second-hand. Developers design these software specially by keeping the various needs of a business in mind. Therefore, they are equally pricey. One way to cut back on this expense is to use free alternatives to high-end or branded software. There are various substitutes available in the market that provide you the same features but without paying exorbitant subscription fee.

Quit traditional marketing and focus on Digital marketing

Digital marketing is not an option anymore, it’s a necessity. If you’re still wasting money on traditional marketing that includes printing ads on newspapers, printing catalogue and flyers, paying millions for a 30-second television advertisement, then you’re missing out. You’re way behind your time. Not only digital marketing costs less but it is more effective too. Marketing online on social media generates a steady stream of customers and also advertises your business all over the globe.

Design your office space efficiently to lower rent expenses

You might think your business needs a huge and sleek looking office building to be successful. But that’s not true. Sure, it does make a statement and improves branding image but that comes way later in the game. For growing small businesses, having an efficient working space is more important. Try not to waste any room in your office. Design to get the most out of your space. Put the heavy fax and printing equipment to the storage room. Use your snack or break room for meetings.

Pro Tip: get rid of the traditional office cubicles. Not only do they take up unnecessary space but also hinder the creativity of your employees. Make your office comfortable, cozy, airy and put some color in it.

[Image via: Google Images]