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How to Start Cost-Cutting in Your Small Business

14 Sep

Do you want to trim off the excess fat in your business budget but don’t know where to start? Have you done the basic ways of saving money such as recycling, getting second hand furniture, etc. but think that there are still some ways where you can cut off cost? Well, you are right. Here are some areas that you need to cut cost on.

Business telephone system

Call up different suppliers and ask them to review your present telephone system. Be ready with your bill. You would be surprised to find out that you are actually not using some of the features you are paying for. There are also some areas that you can completely take off your package. Analyze your needs and talk with different suppliers to come up with a special package for you.

Also, you might want to re-think your current system. If you are not using VoIP, you are missing a lot. Consider changing your whole system to VoIP to enjoy tremendous savings.

Representation expenses

These include meals or entertainment for clients. Make a written policy that requires all those who regularly use these allowances to find less expensive places and services. Set a budget and stick to it. If they go over the budget then they would have to shoulder the excess cost from their own pockets. A lot of employees abuse this allowance and making each employee accountable for his own budget will help you save a lot of money.

Free or cheap software, tools and apps

Instead of investing in new equipment or buying new software, check out the Internet for cloud programs, apps and other tools that are free or less expensive. If you worry about security, find a supplier that has a trusted network. They usually require a small fee but it is nothing compared to buying a new equipment or software of your own.

Outsource

If your company is growing at a speed you did not expect, consider outsourcing your processes such as supply chain management, logistics, etc. It is wiser to let the experts do it instead of investing in your own equipment and hiring new personnel. These companies already have a secure, working system in place so you don’t have to worry.

Ban overtime

Don’t allow your employees to go overtime especially during off-peak seasons. For peak seasons like holidays and Christmas, consider hiring extra part time employees who will only work during this season. You will save more by paying them a regular wage instead of overtime pay.

The key to saving money is by planning your budget thoroughly whether it’s weekly, monthly or yearly. Inform your employees of your plans so that you can get their full cooperation.

 

 

 

If you are thinking about changing business phone systems, check out businesstelephonesystem.org

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