Cost Reduction Strategies for Small Businesses & Startups
Cost Reduction StrategiesFor Small Business & Startups
Cost ReductionRunning out of money is the most commoncause for small businesses closing down, itsnot that they did not make a profit, its thatthey ran out of cash.Reducing costs should be a priority for allbusinesses.
Technology Review your current IT infrastructure and software strategy. Cloud Computing and/or virtualization could reduce your IT spend significantly.Instead of paying license fees for office andproductivity software products considerusing an open source option
OverheadsGet control of your utility billsby analyzing how much energyyou have consumed over the pastyear and how much money youhave spent.Firstly you should use this information todecide how you can reduce consumptionand where. Secondly you should try andbroker a new deal with a new supplier
Office Costs If you own your office consider selling it and leasing an office where you do not have to maintain the building. Consider moving your office to a cheaper location. Consider offering your employees the option working from home, a high percentage of employee would take this option, thus allowing you to downsize your business office space.
Staff CostsConsider using temporary or freelance staff instead ofpermanent staff.Outsourcing back office functions can save money andimprove productivity..There are great outsourcing options for finance, IT,administration and reception
Marketing & Advertising Stop immediately marketing campaigns you cannot measure performance Focus your money on advertising that can be measured and is aligned to your corporate goals.
Business InsuranceBusinesses insurance cannotbe avoided, but ensure youreview your policy annualand make sure you aregetting the best possibleprice.Shopping around with othersuppliers may take time but it couldsave your business thousands everyyear.
TravelTravel should be restricted to sales meetings andbusiness critical meetings.There are many great web conferencing and videoconferencing solutions out there that will save youmoney.
Think Outside The Box Every business is different, keep thinking of ways to improve processes and reduce costs. Hold monthly meeting with employees to think of new ways to save money and improve productivity. Offer employees incentives to come up with ideas, it will save you money in the long term.
Contact Us for help with Reducing Your Costs www.arinobe.com firstname.lastname@example.org 0203 286 7829 +447825 002 908 arinobe_sme arinobe_sme