According to Fundera, only 33% of small businesses make it past 10 years and 50% fail during the first five. And Business Insider says that 82% of those failures are caused by cash flow problems. Cutting business costs is a wise decision if you need more cash to invest into your business development. You can also use this to cut your own prices and get some competitive edge. However, it’s essential to know which costs you can cut without endangering your company further.
4 Small Business Costs You Can Cut Today
1. Office supplies
Go paperless and coffee-less and you’ll see noticeable money savings from your office operation right away. Audit all your office supplies and office-related expenses and mercilessly cut everything that’s not essential for maintaining the place safe and secure as well as your employees healthy.
Going paperless will also help make your office more ‘green’ same is using non-disposable plates, cups, etc. Use this in your marketing campaign to increase your business’ appeal for environmentally conscious customers.
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3. Any services that can be outsourced
An effective way to cut small business costs rather drastically is to outsource some services instead of having employees. This is the best option for one-person businesses and companies that have yet to build big teams.
It might be difficult if you need to fire your current employees and then outsource to still get the services they produced. However, a business owner has to make hard decisions. This change might be crucial for keeping your company afloat during a rough patch. Consider staying in touch with the employees (now ex-) you valued most so you might recruit them again when your company recovers.
4. Energy costs
Energy savings offer you another chance to highlight that your business is trying to be eco-friendly. They also cut your monthly costs significantly.
To cut energy use by your business you can plan your work hours allow for maximum daylight. Be sure to place desks in a way that will allow your employees get more sunlight while they work. You can also turn down a thermostat by 1-2 degrees and install water-saving fixtures in the bathroom.