cost reduction strategies for small businesses & startups
DESCRIPTION
Running out of money is the most common cause for small businesses closing down, its not that they did not make a profit, its that they ran out of cash. Reducing costs should be a priority for all businesses.TRANSCRIPT
Cost Reduction StrategiesFor Small Business &
Startups
Cost Reduction
Running out of money is the most common cause for small businesses closing down, its not that they did not make a profit, its that they ran out of cash. Reducing costs should be a priority for all businesses.
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 and productivity software products consider using an open source option
OverheadsGet control of your utility bills by analyzing how much energy you have consumed over the past year and how much money you have spent.
Firstly you should use this information to decide how you can reduce consumption and where. Secondly you should try and broker a new deal with a new supplier
Office CostsIf 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 Costs
Consider using temporary or freelance staff instead of permanent staff.
Outsourcing back office functions can save money and improve 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 cannot be avoided, but ensure you review your policy annual and make sure you are getting the best possible price.
Shopping around with other suppliers may take time but it could save your business thousands every year.
TravelTravel should be restricted to sales meetings and business critical meetings.
There are many great web conferencing and video conferencing solutions out there that will save you money.
Think Outside The BoxEvery 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 employee's 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
0203 286 7829
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+447825 002 908
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