Running a small business in today’s competitive world is a big challenge. Every small business has to operate amidst several constraints including shortage of manpower, scarcity of resources, more overhead costs, more marketing costs and many others. With all that, the business has to compete with those big ones and the other successful ones doing very well. Studies show that less than 40 percent of the businesses are only able to run profitably. The others are either meeting the two ends barely or making a loss. At the same time, small business sector has been able to generate 65 percent more jobs over the past two decades in the country. It means that the smaller group of the successful small businesses is contributing to the nation’s economy. If you wish your business to be counted among those successful ones, you must do your bit of hard work. Here we discuss a few ways on how to save on small business expenses to steer the firm towards progress and profitability.
Work on the headcount
Manpower is one area that can enable you make substantial amount of savings. If your regular employees are able to manufacture the desired number of goods per month, you might need more manpower to meet the increased demand during the peak seasons. At those times, it is better to hire the additional headcount only part time. Alternatively, outsourcing is also a great idea. While hiring regular employees will add up heavily on your budget, work on the other viable and cost effective alternatives to keep the production in line with the demands with a decent spending.
Payroll and accounting
Often outsourcing your accounts and payroll are key segments that can help saving on running costs. Today we find a large number of offshore and in-shore companies that take up the accounting and payroll jobs. If you hire separate personnel in house exclusively for the sake of managing these tasks, you are going to spend higher, whereas outsourcing them will cost you much lesser. Usually most of such tasks happen only during the end of the month and at other times, the staffs you hire in house for this are a waste of money. Also, these firms have sophisticated software to double check the figures and therefore accuracy is also maintained.
Never develop a fancy for luxurious offices. As a small business, you can even turn a room in your house or manufacturing facility as your office. In this way, you can save on rents and also the elaborate interior works you might like to do. As long as the office space supports the various business operations and presents an inviting look to the visitors, it is more than enough.
Office supplies and other utilities
With a proper planning and curtailing the urge to spend luxuriously, small businesses can save money on taxes, many office supplies and several other utilities they consume for the daily operations. At the same time, you never have to compromise on the quality you deliver. Therefore work on the many aspects of office supplies and minimize the expenses.
Go for laptops in place of desktops
Laptops consume 90 percent less on utility bills than those big desktops. In some cases, you can also think of using some tablet computers. Unless the work involves some designing and the need of that big screen, try to minimize the use of desktops and move to laptops.
Minimize the printing
Often, sizeable money is wasted on prints that you can otherwise avoid. Decide what to print and what to circulate in digital form. This is a sure way to save a good amount of running expenses. Most times, over 40 percent of the printed materials end up finding their place to the dust bin. Ask your employees to think twice before they print anything wasting ink and paper.
Bargain with the suppliers
Every business has several suppliers. Most people do not scrutinize this aspect when it comes to buying from them. Every business wishes to retain their customers and look for a continuous relationship with them. so, if you negotiate, they will certainly be willing to come down from their rates for the various supplies they make to your organization. Use this option to reduce the overheads.
Right from simple to complex ways, there are several proven ways to cut down on expenses. Any effort will bear fruit only when you are diligent. On one side, explore the ways to bring down the spending. On the other side implement your findings seriously and focus more on development and marketing besides curtailing expenses. With a planned approach, you are sure to lead your small business to success.