How to Cut Costs in Your Business
Welcome. MRA Business Solutions is a cost cutting consultant firm with money savings experts for small business and business cost savings consultants. Today’s blog will give you tips, tools and techniques to lower your business costs.
My name is Mike Robertson and I am an owner and director of three businesses. I opened MRA Business Solutions in January of 2005. This is our 15th year. I have been an entrepreneur since the age of 14. I am a money saving expert for business. Please understand that the below does not constitute financial advice.
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1. Find Out Where You are First
One of the first ways to cut costs in business is to understand your current and future costs. You cannot apply business cost savings measures without a full and complete financial report, which is part of the overall financial business plan. There are a number of ways to prepare such a report, but the best way is to hire an expert, like a financial planner, in cash flow modelling.
2. Go Virtual
One of the biggest business cost cutting strategies is to go virtual. Can you work from home? Can you reduce your office space and use remote workspace?
Are you still paying huge prices for computer software licenses? Are you paying for computer servers, maintenance and upkeep on those computers?
Many traditional office and computer systems can be replaced with virtual systems. These virtual programs are how small businesses can save money daily.
Virtual Office & Remote Office
Since March of 2020, we have all become accustomed to remote meetings whether it is with family, friends, colleagues or clients. There are a number of free and paid video conferencing software solutions available.
Cloud Computing is using and sharing computer systems across the internet that are not under your control.
Google Drive is a free service that allows the user to create, store and share word processing, spreadsheets and slide presentations over the internet.
Google G Suite is a suite of office productivity tools that help your business save money and time. G Suite pricing starts as low as £4.14 per user per month for Basic, £8.28 per user per month for Business and £20 per user per month for Enterprise.
Google G Suite comes with Google Meet a secure video conferencing application as standard.
You can tie together your Google G Suite with Google Voice which is a virtual phone landline using VOIP (voice over Internet Protocol).
Google Voice Starter—Supports up to 10 users or licenses for small businesses. The rate is USD 10 per license, per month. For example, if you have 6 users, you’re charged USD 60 each month.
Google Voice Standard—Supports an unlimited number of users or licenses for domestic businesses. The rate is USD 20 per license, per month. For example, if you have 25 users, you’re charged USD 500 each month.
Google Voice Premier—Supports an unlimited number of licenses for businesses with international offices. The rate is USD 30 per license, per month. For example, if you have 150 users, you’re charged USD 4,500 each month.
These are just a few of the countless online productivity tools that are on the market. Shared digital Whiteboards and project pinboards are just two more types. There are solutions to almost any problem or process.
Regardless of the problem or the solution, MRA Business Solutions experts can help you integrate cost and time efficient solutions.
3. Modernise Your Marketing Efforts
One of the best money savings tips for small business is to modernise your marketing efforts with digital marketing and start growing your business.
Go digital and stop spending a fortune on traditional marketing. You can easily spend hundreds for a small leaflet drop for a 1% return with only 10% of the recipients reading the material before throwing it away. Placing the same digital leaflet on the internet could reach thousands of readers over the years. The rate of return may be similar but the cost could be exponentially less.
You can spend hundreds on an advertisement in your local paper business directory or newspaper that very few people will ever see and fewer will act upon. Listing your business correctly on Google My Business could attract hundreds and thousands of visitors to your website.
Everyone is online nowadays. Well, more than 90% of people are online. I do not know any of the remaining 10%. Build a website so that people can find you and your business online.
Reach your target audience with social media and email marketing. Both social media and email marketing can be done for free or much cheaper than traditional marketing.
Ask for referrals from the people you know. There is no harm in asking and it is free.
Ask every customer for a Google Review. Make them brand ambassadors for you. If they are happy, it is free advertising.
Digital marketing is one of the best ways businesses can save money.
4. Time Management
Managing your time and your employees’ time correctly could literally save you thousands. Understanding where you are spending your time can make you and your employees vastly more productive.
As the smartest people say, “Time is Money.” One of the best cost savings strategies in business is to manage your time better.
The best idea is useless if you forgot it in a week because you got too busy to implement it. Or, what happens to your great idea when it turns out to be too big to implement all at once?
By adding it to a project, you can break it down into smaller pieces and tackle those smaller pieces one at a time when you have free time. Asana is a team collaboration tool that allows you to keep track of projects and tasks and manage communication about both in a single location.
You don’t have any free time? Clockify will find it for you. By putting your and your employees time to a clock, you will be shocked at how much time is actually wasted everyday. Clockify is a time tracking app that can be used on both your desktop and mobile.
Making better use of your time will make you more productive. If you free up time, you can engage in more free online marketing, which will bring in more customers and make you more money. More money is the greatest of all small business cost savings.
5. Go Green – Become Eco-Friendly – Cut Your Energy Bills
Have you always wanted to do more to save the planet, but did not know how? Did you know that saving the planet includes several money saving tips for small business owners?
As our parents and their parents before them always said, “TURN OFF THE LIGHTS!” They were right. There is no need to waste energy when we are not using it. Everyone instinctively knows how to cut costs in a small business.
Turn Off the Power at Night
There is absolutely no need to keep the lights and all your equipment turned on at night.
Turn Off Your Computers
A desktop PC typically uses around 100 watts of electricity, the equivalent of 0.1 kWh. This means that if a PC is on for eight hours a day, it will cost 10p a day to run the laptop (based on an average energy unit cost of 12.5 p/kWh). If you are currently leaving all your computers on 24 hours a day, you could be wasting 20p a day on each computer.
Use Powerstrips to Turn Off Appliances
If you are using several devices at every workstation, you can save time and money by turning them all off at one time with a switched power strip.
Use SMART Occupancy Sensors
Get ahead of the competition and invest in smart technology that will turn the lights on and off for you.
Go Paperless – Print Less
There are so many different printing costs and they add up. Pound for pound, ink and toner are some of the most expensive products in the world. If you include printer maintenance and file storage, printing is a high cost endeavour.
Scanning your documents and mail into the computer or saving emails and other documents to the computer is guaranteed to save you money.
You should make sure that your employees are only printing out the bare minimum of what is necessary.
If you must print, make sure you are shopping around for the best price for ink and paper. Make sure you are buying both of these in bulk to reduce the per item price. However, ink can expire. Only buy what you can use before the expiry date.
If you must print, make sure you are printing efficiently. If it is a draft document, it should be printed in black in draft mode and double-sided. Avoid adding images to draft documents if at all possible.
You should think about replacing your printer with a new one. Newer printers use less ink and electricity than older ones. Also, you should consider a printer with the ability to scan multiple pages at a time.
Please do not forget that if you are going to move to paperless files that you will need a document management system.
Change Your Lightbulbs
Switching out high energy halogen light bulbs for low cost LED bulbs can save hundreds from your electricity bill.
6. Buy In Bulk – Reduce Supply Costs
Until you fully embrace paperless billing and contracts and note taking, you will continue to need paper and pens.
Buying your office supplies in bulk can give you a much lower per item price. Amazon Prime can provide you with cheaper prices and free shipping too.
Wholesale clubs offer great discounts on thousands of items for the office and home. Owning a business comes with rewards, you should take advantage of them. Join Costco, Makro or Booker Wholesale Club.
7. Renegotiate Utilities
No list of business cost savings ideas would be complete without a nod to long term utility contracts. If you need to save money, you may be able to renegotiate rates. It is worth a phone call.
Call each of your suppliers and renegotiate your rates. Shop Around for better utility prices. Even if you are on a fixed contract, when you are in need, it is always worth checking if there is room to negotiate.
Make sure you double check and add expiration dates of your current contracts on your calendar. When those contracts expire, join a cheap energy club and shop around for the best products and deals.
8. Hire Smarter
Every new hire must be willing to take on additional responsibilities. Your employees must accept that they will be expected to be a brand ambassador for your company. Every employee has a responsibility to market your firm online through social media, whether it is exclusively on LinkedIn or engagement on your website or Facebook, Instagram and Pinterest pages.
Always be on the lookout for additional useful skill sets in your employees.
Don’t always assume that you have to do everything in house. Outsourcing regular tasks or hiring temporary employees during peak seasons can save a great deal of money.
Entrepreneurs are not expected to be experts at everything. We have to be experts at delegation. Here are just a few of the jobs that can be outsourced:
- Human Resources
- Lead Generation
- Accounting and Payroll
- IT Management
10. Lower Financial Expenditures
It may be counterintuitive to spend money to make money, but it is true. Another true saying is:
“If you want something done, do it yourself.
If you want something done right, hire an expert.”
Business financial planners are the experts in business cost cutting ideas. They are experts in planning for the future. They can use special cashflow forecasting tools that can show you precisely the consequences of your decisions. They can give you financial advice that is regulated by the Financial Conduct Authority.
I hope these ten areas of business cost savings tips and business money savings ideas have given you great starting places to save money and cut costs. This is just the beginning though. I have given you some great techniques but can’t guarantee results without knowing your circumstances. If you are serious about cutting costs while making money, you should go further.
MRA Business Solutions specialises in cost cutting measures for companies. Simply send me a quick email with your current situation to email@example.com or fill out our Contact Us Form and I will get back to you on how we can help your business.
MRA Business Solutions works in partnership with Mike Robertson Associates a financial planning company for businesses and business owners to lower costs for the present and plan for the future.
MRA Business Solutions Digital Consultants can help you develop and implement the best virtual solutions for your business including document management systems and time management solutions.
MRA Business Solutions Digital Marketing Consultants and SEO Consultants can help you develop online marketing strategies including implementing many free solutions and social media strategies.