10 Ways to Reduce Small Business Costs

10 Ways to Reduce Small Business Costs

Startups that can make consistent revenue streams at the lowest costs are in most cases the most successful.  It may seem like reducing costs is an extremely arduous task, but the opposite is actually true. Diminishing the costs of operation solely requires smart choices when deciding where to put your small business’s funds.  Overall, there are nine primary ways to reduce said costs.

Use Technology

Technological advancements have made it possible to save money in ways never thought to be possible.  From teleconference services and online payment services to open-source software and remote desktop applications, there are many ways operational costs can be reduced.

Ditch Your Landline

Traditional phone lines are often times an expensive and unneeded business cost.  Small business owners who convert to exclusively cell phones and virtual phone lines can significantly diminish their company’s costs.

Go Paperless

The cost of paper, ink, mailing supplies, and postage may seem minimal, but can certainly accumulate major expenses over time.  By transitioning to digital invoice and bill systems, filing all important paperwork in your computer, and not printing unless absolutely necessary, some of the most recurrent costs can be avoided.

Start Marketing Your Business Online

The internet is the best source for low-cost marketing.  It can provide the fast-paced and high-result marketing needed for small business to progress.  Some options for online marketing include business blogs and social media. The most efficient way to see increased interest in your business for a low cost is to use the internet as a medium for marketing. 

Reduce Credit Card Debt

Although you may feel that using a credit card at the commencement of the business will reduce some of the initial costs.  However, this credit card debt accumulates interest over time. As a result, this method is not the most effective way to diminish costs in the long term.  Reducing credit card debt ultimately ensures the long term financial stability of your business.

Create and Stick to a Business Budget

It is impossible to make smart financial decisions without a clear idea of the money entering and exiting the business.  A daily business budget can efficiently organize the cash flow within a company. As a result, major sources of cost can be identified and thus you know how much money you can spend and still make a profit.

Cut Back on Software

There are most likely numerous applications on your various devices that you never use or very rarely use.  Overall, you can reduce business costs by only purchasing the software you need. This reduction also helps you to avoid any upgrade fees associated with the aforementioned software.  Open-source software alternatives to brand names are viable options for emerging enterprises.

Buy Refurbished Equipment

Buying brand new, retail-priced equipment can be extremely costly.  This expenditure can be avoided however by purchasing refurbished equipment.  The older equipment is often just as effective as the new model and costs significantly less.

Look Into Bartering

Bartering is the exchange of your good or service for another good or service.  There are no money transactions in bartering. When bartering is executed efficiently some of the initial operation costs can be avoided.  This reduction is due to the fact that bartering allows you to fill an immediate need without paying in cash.

Conclusion

The previous nine techniques are critical if you want your business to be successful in the long-term.  The beginning of a startup is often the most expensive component of its journey. If the initial costs can be reduced your business will have the traction needed for sustained growth.

Source

Gregory, A. (2018, December 27). 10 Ways to Reduce Small Business Costs. Retrieved July 16, 

2019, from https://www.thebalancesmb.com/reduce-small-business-costs-2951415

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