With increased competition and a volatile marketplace, the pressure is on small businesses to keep a tight rein on cash flow. Small, incremental costs can all add up and really hinder a company’s bottom line. In this article, we look at four ways you can cut hidden business costs, while improving efficiency and profitability.
1. Review Your Web and Email Hosting Services
Web and email hosting services can cost hundreds a year, and many time-poor businesses often stick with the same provider they signed up with from the outset without looking at other options. Take the time to shop around. You might find switching your hosting services will not only save you time, but you may also find a more efficient and streamlined hosting service has better mobile and cloud-based functionality.
2. Cut Down on Insurance Costs
Public liability insurance, car insurance and product liability insurance can all add up to hefty costs for a small business trying to stay afloat. Take the time to negotiate a better deal. Some insurance providers are more than happy to match or beat their competitors simply to keep you loyal as a customer.
It is also important to revise your insurance policies every few years, as your businesses may have changed in nature and there may be aspects of your policy you no longer need covered.
3. Leverage Technology
Accounting fees, administration fees, personal assistant costs and staff costs can significantly drain your resources. Make the most of cloud-based technology and digital platforms. There are now so many marketing automation systems, business automation tools, account-keeping apps, workflow tools and CRM systems available – many of which are low or no cost for small businesses and sole traders. With digital off-shore assistants becoming more widely accepted than ever before, outsourcing simple tasks has never been easier.
Read more about technology that can help your business: Top 10 Apps for Managing Your Small Business.
4. Tighten the Supply Chain
You might have excellent, working relationships with your suppliers, but if there are others offering you a cheaper alternative, it’s time to break the bonds. Some suppliers are happy to negotiate and match or beat their competitors to keep your business, so it’s vital to speak up when you spot a cheaper option. If your business is flourishing and you have more resources, consider negotiating a larger wholesale bulk rate, which can also help drive the cost of goods down in the long run. Over time, these small changes can add to significant cost savings and efficiencies for your business, helping you to scale.
As a business owner it’s wise to continue to review your overheads and locate areas where you can adapt. These are just a few ways you can lower business costs, but an ongoing analysis of your business finance will help you remove as many barriers as possible.