7 Ways to Reduce Operating Business Costs and Expenses for Your Business


how to reduce operating cost and expenses

If you are a small business owner or running a start-up, it is possible that you are operating on a limited budget. This is when every penny counts and you are likely to be on the lookout for ways in which you can reduce operating costs and expenses with just a few simple steps. Here are some ways of doing this without compromising on the quality of your products or services and without losing the goodwill of employees.

 

Harness Technology to Your Advantage

Automation is a boon to all businesses and small business in particular. The numerous software programs and online systems that are available have made it easy to automate various aspects of a business like website hosting, accounting, payroll, and marketing communication to name a few. When trying to decided about a service or program, just ask yourself whether it will help you with one of the most time-consuming tasks that you currently handle or not.

 

Do Away With Redundant Services

Take a close look at the different subscription plans that you have opted for such as phone plans, internet services, web hosting services and the like. It is likely that some of these are set to auto pay and you are spending money on services that you no longer use or need. If the service has not been utilized for a minimum of 90 days then it is time to stop it altogether and instantly reduce operating costs and expenses.

 

Encourage Telecommuting

Maintaining a physical office can be quite expensive and take out a large chunk off your operating budget. If your business model is such that work can go on irrespective of the location of employees, then encourage them to telecommute. This can lead to lower utility costs and eventually, you might also be able to downgrade to a smaller leased space.

 

Try Outsourcing Some Tasks

Some business practices can be outsourced to another agency or even an expert or freelancer. Take for instance, marketing and advertising. If you do not require an in-house team or even an external agency to handle it, you could opt for a freelance marketing specialist on a need-to basis. This is an efficient means in which you can reduce operating costs and expenses.

 

Do Not Delay Invoice Payments

By being diligent about paying your invoices on time, you can avoid associated late fees. Also, some vendors offer discounts for early or prompt settlement of invoices and this can be of help even if the savings are only two to three percent.

 

Go Green

Implement eco-friendly measures that are not good for the environment, but will also help notch up some savings. Going paperless will save you the cost of paper, mailing supplies, and ink besides saving a few trees from being cut down. You can also switch to fluorescent lighting as well as better insulation to bring down heating and cooling costs.

 

Seek Bids

Putting in place a bidding system for vendors to take up projects can be a good idea. With different bids coming in, you will be able to determine a fair price for every project and thus, not end up overpaying or compromising on quality. But be sure to clearly state your specifications and expectations leaving no scope for any confusion later on.

 

All these suggestions can help you save at least a little bit of money when implemented. But, do not hesitate to spend money on people and services that are truly essential to maintain quality control and ensure timely deliveries.

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About Sreeram Sreenivasan

Sreeram Sreenivasan is the Founder of Ubiq, a business dashboard & reporting platform for small & medium businesses. Ubiq makes it easy to build business dashboards & reports for your business. Try it for free today!