There are many simple ways in which businesses can cut costs and save money. However, with every decision, there is always the risk that it could negatively impact your company’s trajectory and minimize its growth.
So, when you are looking to reduce outgoing costs, be mindful of the impact that this might have. Here are ten ways in which your company could cut costs without sacrificing its growth.
- Buy in bulk where possible
Buying supplies to last you several months can often save you a bit of money. Even when you are buying your weekly groceries, you could save an estimated 20% on your purchases by opting to bulk buy.
- Unify your communications
Your business communications system can really increase in performance when you use a unified communications solution. This is because it allows users and employees to be more productive and efficient, finding exactly what they need without wasting time trawling through tonnes of information and different tools.
- Reduce waste
Whether your business works with raw materials and production or on the service side of things, there is always going to be wastage that occurs. Encourage employees to be more mindful of waste materials, perhaps by highlighting the environmental impact.
- Lower your energy costs
Money Supermarket estimates that a medium-sized business will spend £1458- £2239 on gas and £3,774- £7,234 on electricity every year. With such a wide margin, this shows how reducing your energy usage can save you thousands of pounds every year without even dropping below the average.
- Consider downsizing your office building
This is by no means synonymous with downsizing your business. Keeping your level of output the same, you may realise your office space is too big, or its space isn’t used efficiently. If this is the case, it might be time to move to a more cost-effective office premises.
- Could you buy things ‘used’?
Technology, furniture, and even company vehicles can be bought lightly used, as these often come with a slightly lower price tag.
- Find cheaper suppliers
By researching into different suppliers, you may find somewhere that offers the same materials or products of the same quality yet for a lower cost.
- Are any of your clients unprofitable?
If the answer to this is ‘yes’ – do not be afraid to choose your clients wisely, focussing on the clients that deliver more opportunities and a higher profit to your company.
It might be the case that some of your employees, or you yourself, are not working as efficiently or productively as possible, as they are weighed down by unspecialised and menial tasks. Instead, why not consider outsourcing these jobs so that your employees can get back to doing what they do best.
- Work with your employees
When it comes down to it, it is your employees that see the day-to-day operational side of things, and so they might have observed areas in which your business is inefficient and could save some money. Work with your employees to find out how they can help. After all, it is your valued staff that drive your business forward towards growth.