Seven Ways to Cut Business Costs

Controllable costs are a great place to start. Here are some ways to cut business costs and keep more money in your pocket.

Go Paperless

As more and more expenses get handled electronically, this is a no-brainer. You could greatly reduce your costs for paper, printer ink, and postage by switching to email or fax invoices. You also will reduce your office clutter and carbon footprint.

Buy in Bulk

Track items you use on a regular basis and consider buying those goods in bulk. Many goods like paper, cleaning supplies, trash bags, and office supplies don’t expire so buying at a lower bulk price can lead to sizable savings. A word of caution; be careful not over to buy, especially items that will expire. You don’t want to buy supplies, just to throw them away later. If you sign up for one of the office supply store buying programs you can get reduced prices on selected items and they will deliver them in 1 to 2 days so you don’t have to waste time going to the store and picking up supplies.

Bartering

For hundreds of years, bartering was the way business was done. You would trade your goods or services to someone who needed them in exchange for something they had that you wanted. That kind of economy is making a comeback. The big advantage is that you are getting what you need for your cost to produce your goods and not at retail or even wholesale prices. The internet has made this option even easier.

Buy Gently Used

Whenever you can, buy used. This can save you 50% of your costs or more. For example, buying a new cube truck could put a big dent in your bank account. If you can live with a truck that’s less shiny with a few miles on it your savings could be significant.

Save on Gas

They cost more upfront, but diesel and hybrid vehicles can save you money on fuel expenses. The Department of Energy has a calculator on their website that will allow you to calculate how long it will take you to break even on your additional cost of buying a hybrid.

Save on Telephone Services

Phone systems are really, really expensive. You can save a lot by using a combination of online services. Services like Skype have business services for as little as $3 a month. Almost all cell companies offer free long distance. If you need land lines, consider bundling your phone service with your internet if you have the option.

Ask Your Employees

If you ask, you will be amazed at what your employees can come up with to help you save money. They are in the trenches and will have thought of ways to save money that never occurred to you.