If you’ve been called a thrifty business owner, don’t worry, you’re not cheap. You’re wise. One of the easiest ways of boosting your profits is to spend smarter. Running a business isn’t easy, especially with a tight budget constantly making you throw out innovative ideas. But controlling costs is an extremely crucial part of running a successful business. So, here are a few things you can do to reduce operation costs without sacrificing the product quality, quality in your marketing, various business relationships, and research and development.
Office space costs
If you’re renting out a large office space that is simply too much for your small staff, it’s time to switch to a smaller space. You might also be able to negotiate with your current landlord to reduce prices or for better lease terms. However, if you don’t really need an extensive space for your business, you can always operate from home. Or even go completely virtual. In addition to saving on renting an office space, conducting your business from home can save you money on insurance, business taxes, and other utilities. But if you are thinking of transforming to or starting a home-based business, it’s important that you conduct preliminary research on the prospect. This is because there may be zoning and other local laws in place to prevent such activities in your neighborhood or state. You should also consider how keen your family is to live with a business every day and how productive you can be when working from home.
Supply and import costs
If you’re running a business that relies heavily on wholesale supply, every penny saved is a penny earned. For example, a business such as a restaurant makes a lot of wholesale purchases and therefore, getting the best deal on supplies can make a greatly impact the bottom line of the company. And as an owner, you should constantly monitor supply costs and be on the lookout for discounts and alternative sources that are cheaper. If you rely on imports, you can look towards services that can import your goods or merchandise at lower rates. You can enlist the services of parcel post clearance to reduce import costs and ensure that your goods are cleared at customs without any issues.
If you are managing a service or a business that requires a vehicle, you would know how costly vehicles can be and how they can eventually affect your company’s bottom line. Fuel, repair and servicing costs for vehicles such as vans, crew cabs and cars can be huge. One way of reducing vehicle costs is by opting to buy an older vehicle. Buying a shiny new vehicle can put a serious dent in your wallet, but if you’re okay with settling for an older vehicle, you can browse through online classifieds and dealer’s lots to find a good, used vehicle in decent condition. If you’re just starting out and you don’t need a vehicle on a regular basis, or if money is tight, you can simply lease a vehicle, this will no doubt free you from depreciation and maintenance costs.