Tips To Control Costs of Your Small Business

If you want to run your business more efficiently and ensure that it will be around for decades to come, you need to run your business as low-cost as possible. There are more efficient ways to control costs that could help your business save money, here are some suggestions for small businesses to control costs.

Consider maximizing your square footage
Consider a smaller space to reduce your monthly lease payment and use the square footage more efficiently by using common areas and multi-purpose areas as dedicated workspace. Try having “stand-up meetings” instead of using meeting rooms; meet at restaurants or other places to have meetings and make them more special. Reduce unused space and get rid of the big desks in lieu of smaller more compact desks; a lot of times you don’t need all that desk space anyway. Check for different types of new designs with architects and interior designers who are always coming up with new ways to use space more efficiently. Also, you can store a lot of things vertically on the wall instead of just putting them on the floor. Things like that can really help you maximize your space.

Commission Your Sales Force
Obviously, two things that are the biggest expenses for small businesses are the rent and payroll. If you can reduce the cost of your employees by paying them via commission which means they only get paid the majority of their salary when they get results; this is what a lot of sales oriented companies do. For instance, they pay a commission for each sale that employees make and sometimes they pay them a base salary as well. Some employees want more job security and predictability of income, might not be attracted to a job with high a portion of their income paid as commission. However, many money motivated folks look exclusively for these types of opportunities because they know they can make more income, you’ll attract motivated employees.

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Eliminate unnecessary landlines
Many households and businesses don’t even have landlines anymore, some businesses need a landline to maintain a Google business page and things like that but in many cases a landline is unnecessary. You can get a free Google Voice number and have calls forwarded to your email and you can check your calls on the Google Voice website. You can have the calls forwarded to pretty much any phone you have. Alternatively, you can use Skype; Skype is another cheap way to make calls. Check with your mobile phone service provider as well, many times they’ll run promotions that will offer free phones, reduced monthly payments and plenty of other extras that will reduce costs as well as maximize efficiency at your office.

A lot of small business owners when think about raising profits and neglect cutting costs which is of equal importance within a business because sometimes you can waste a lot of money on things that aren’t actually producing additional revenue and so there are tons of creative ways that small businesses can cut costs.

By | 2018-07-02T22:18:24+00:00 July 2nd, 2018|Uncategorized|