Three Awesome Tips For Cutting Costs in Your Small Business

Cutting Cost Small Business

Even when the economy or your business is going strong, cutting costs in your small business is never a bad idea.  In fact, here are three awesome tips for cutting cost.

The economy is hit or miss — one minute it’s up, the next it’s down.  So, if you’re looking for a reliable way to protect your finances, make sure you cut costs all year round.

Forbes

As we come to the back-half of the year, it’s a good time to look at your expenses and see where you might be able to make some changes. These are the three tips that we use for cutting cost, and we believe they can help you in cutting costs in your small business.

Feeling like your business isn’t going the right way? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

Cut out time-wasting activities

Activities that waste time are one of the biggest strains on business resources.  Small business owners often wish they had more hours in the day.  The truth is however, that we and our employees probably spend too much time on unproductive activities.  If we could remove them, we’d be able to get more accomplished.  We find making a list of what you are doing throughout the day helps.  Take a look at all the activities and see what is least value-added.  Try to remove it one day.  See what happens.  If everything is fine, then eliminate it.

Leverage Technology, cutting costs in your small business

Travel is a killer.  It not only costs time but also money.  With technology today, it is so easy to conduct meetings virtually, saving both time and money.  Some people will want face-to-face meetings, but others may not.  However, it doesn’t hurt to ask.

Cutting costs in your small business by Saving Resources

Space

In cities like New York, space is a premium.  The same is true in any major city.  But, this just isn’t office spaces, it’s server space, storage space, etc.  An e-mail or a file retention policy can help with cutting cost in your small business .  A semi-annual file clean-up can cut down on unnecessary storage.  Also, smart use of shared space can be more cost-effective than renting or owning office space.

Office supplies

Even in our electronic world, we still use a lot of paper and ink.  While these aren’t the most expensive items, wasting them can add up.  Ask yourself, do you really need to print that presentation, letter, etc.?  If so, can you print it more efficiently, side view or double-sided for example? It’s a simple step to cutting cost in your small business

Utilities

Let’s face it.  Most businesses waste electricity, gas, etc.  Therefore, to cut costs in your small business, think about where you might be able to reduce your energy usage.  First, how can you make the most of natural lighting?  Second, could you switch to a more energy-efficient option like LED lighting, for instance?  Third, could you use window shading to reduce AC costs?  Finally, could you install a smart thermostat or smart appliances?  In fact, some electricity companies provide discounts for use or for purchase.  Either way, it’s a great way to cut costs.

In summary, these are just a few ideas for cutting cost in your small business. There are others that we explore in our post “4 Ways to Avoid Wasting Money as a Small Business”.  You’ll probably come up with even more.  A consistent effort is what’s key.

At ProStrategix, we know you have concerns.  We’re designed to help give you the business support you need so you can focus on doing what you love.  If you would like to learn about how we might be able to help you, please contact us.

Avoid Wasting Money: Small Business Tips

Avoid-Wasting-Money-Business

All businesses (unless they’re non-profit) have one thing in common: they all need to turn a profit.  The easiest way to turn a profit is to avoid wasting money as a small business. So read our tips to learn more about how to save and grow without spending money

Unsure of how to take your business from good to great? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a FREE thirty-minute consulting session. 

4 Ways to Avoid Wasting Money as a Small Business

To start, the first step is to understand what a “deal” means to you.

1. Deal or No Deal?

Often, we as small business owners are bombarded with advice, especially when it comes to deals.  Not all of this advice is bad, however, but whether something is a deal, only you can decide. 

Importantly, the biggest mistake many people make is to focus on price versus value.  In other words, if you focus on the value it provides to your small business, you avoid wasting money. It’s a shortcut to long-term success, in many ways.

Have you ever bought something cheap, and it broke or didn’t do the job, etc., only to have to buy something else?  I think we all have.  But, it teaches us a great less about value.  Value is a measure of quality for a given price.  Granted, value is tough to measure because quality is tough to gauge.  But, the key question is really ‘will it do the best job at that price level’?

2. Minimize Impulse Buying to Avoid Wasting Money as a Small Business

Let’s face it.  We all buy on impulse.  It happens.  There are many who will say “never buy on impulse”.  While that’s great in theory, we all know it’s going to happen.  The key is to minimize it.  So, when the urge hits, take a breather and ask, do we or I really need this?  Therefore, if you are buying something, you should have a reason, even if it’s just to treat yourself.

3. Have a Reason to Buy is a Great Way to Avoid Wasting Money as a Small Business

Building on the last point, you can avoid wasting money as a small business by ensuring that all your purchases have a purpose.  Some small business owners are really good at this.  In contrast, some aren’t.  If you fall into the latter category, then, it’s helpful to make a list of what you spent for a week, 2 weeks, or a month.  Next to each purchase, put a check if it had a reason.  Count how many checkmarks you have.   Granted, it’s a bit tedious. But, it’s a good tool to help track and train new spending habits.

4. Find the Hidden Inefficiencies

Look, most small business owners didn’t start their businesses because they had business degrees.  So, it’s likely that there are some hidden inefficiencies in a small business that are wasting money.  To avoid them, it can be helpful to analyze your business model once and awhile. 

It’s so easy to get caught up in the day-to-day running of the business, you may not even notice that inefficiencies have crept in.  For instance, continuing to use a given service because you forgot to cancel it.  Or, for example, paying bills late because you were too busy to get to it. It’s things like that which can save you from mistakes that will cost you in the future.

Therefore, It’s often helpful to get some outside advice as they can look at your business from an unbiased perspective. Once you have identified the issues, you can avoid wasting money as a small business.

In summary, if I haven’t convinced you by now that these steps are important, maybe this will: 82% of businesses that fail, do so because of cash flow issues. So, let’s work together to prevent that.  

At ProStrategix, we know you have concerns.  We’re designed to help give you the business support you need so you can focus on doing what you love.  If you would like to learn about how we might be able to help you, please contact us.