ABOUT eight out of 10 small businesses fail within the first 18 months of opening their doors.
One of the many problems these companies normally face involves the lack of finances for its continued operations.
Even though these small businesses may be able to sell large volumes of products and services, they may eventually fail completely due to high levels of expenses.
To avoid these and other similar problems, here are a few tips that you can use to reducevyour small business costs.
1. Reduce labour costs - Hire contract workers and freelancers for non-core jobs and instead of permanent staff.
The staff that a small business hires can make a huge difference in the amount of money paid out each month. The small business owner needs to know exactly what type of labour will reduce small business costs.
For instance, instead of hiring full-time permanent employees to install and repair computer systems, you can hire freelance technicians instead.
Hence, you eliminate the financial cost of paying higher competitive salary rates, health insurance, paid time-off and other related benefits that come along with the traditional hiring status.
2. Reducing paper use
Cutting down on the cost of buying lots of paper for the business can also be a big saving for the small business owner. There is a wide range of different ways to accomplish your goals and objectives in this area. For instance, you can eliminate the large volumes of paper use by utilising the following recommendations.
Make sure to use the double-sided default feature when printing large volumes of copies.
Instead of contacting the traditional courier to send files from one destination to the next, use electronic file systems to send paperwork band forth.
Old reports and documentation can be recycled for scratch paper
Reduce font sizes to print more on one page when appropriate
3. Switch from legacy systems to new technologies
The newer technologies are presently being built for all kinds of different things to do. To save time and money, these newer systems can be deployed at any time for use in both small and large companies.
Therefore, if there are any older legacy systems in anywhere of the operation, an alternative more updated version can help you to eliminate added expenses.
4. Reduce overhead and energy consumption with a programmable thermostat.
Bringing new money into the business is not the only way to turn a profit over and over again. You can reduce the expenses by paying close attention to the energy that is being used to run a specific operation.
Energy consumption can now be controlled automatically with a smart thermostat. With the programmable thermostat, you can programme the thermostat to turn all of the utilities off when no one is at work.
5. Market your business with affordable innovative digital strategies
Some large companies have very large marketing budgets to successfully market their brands today. Even though this is true, small companies can get the same or similar results by deploying affordable social media network strategies and techniques online.
For instance, if you want to use LinkedIn and Facebook to market your company’s services, you can cut the cost of traditional marketing down by as much as 50% and more if you know how to run these campaigns effectively.
Clarke works with businesses all over the world to help build their online communities and is currently collaborating with UMC Solutions.