The costs associated with running and owning a business, even a small one, can be astronomical. It’s easy to overspend on tempting investments like an expensive storefront instead of an affordable serviced office space or a fancy espresso machine instead of a serviceable coffee pot.
To ensure you don’t slip into any of these pitfalls, here are our top five methods for keeping business costs low:
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Negotiate with Suppliers
Before hiring any vendor or supplier for your company, it’s important to shop around for the best deal. This is true for insurance, drinking water, printing, and office supplies, as well as software and technical security. Always let them know you’re looking at other options and will choose the vendor who’s willing to give you the best value for money.
If you’ve had the same provider for some time and the price has remained the same or gone up, it’s time to negotiate a better deal. Tell them you’ll need to shop around and see who’s offering better prices. This will reveal how much (or how little) they value your business. Be willing to walk away if a provider refuses to negotiate a fair deal.
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Hire and Appreciate Your Dream Team
Your team is who you will work with day in and day out, and selecting the right people can have a direct impact on your bottom line. People who are highly skilled at what they do are generally more efficient. They are capable of getting more done in less time, and this will undoubtedly improve client satisfaction and retention.
It’s also hugely beneficial to develop an inclusive workplace and to keep your dream team happy by showing them how much you appreciate them. Even if you cannot raise their salary regularly, you can appreciate them by providing comfortable working conditions, company celebrations, and thoughtful rewards for good work. This will keep your team happy, engaged, and committed to sticking with you long-term.
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Outsource Part-Time Work to Freelancers
When you don’t need a full-time employee, or you’re not able to offer benefits or a high salary, consider outsourcing to independent contractors. There are freelancers for hire who can do anything and everything someone in your office can do, from administrative work and bookkeeping to social media management and copywriting. They can also be highly specialized in one area and act as a consultant. However you choose to use freelancers, this move could save you a significant amount of time and money.
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Transition to a Serviced Office
Leased office space is often one of the largest expenses a business can face. Depending on the type of business you have, however, you may not require expensive rooms. Serviced offices provide a private and serviceable space without the high price tag.
Some co-working spaces offer the flexibility of contract-free rentals or short lease agreements while still supplying the benefit of fully-furnished offices, high-speed internet, executive boardrooms, and a welcoming lobby. You’ll get all these benefits and more in a professionally managed space, often with 24-hour access.
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Take Advantage of High-Reward Credit Cards
Cutting costs doesn’t mean you have to avoid spending money at all costs. You will still have expenses. Spending money wisely is what will make the biggest difference. If you qualify for a business credit card that offers cash rewards or a points system, you can earn some of your money back directly or through discounts and travel offers.
Starting and running a small business can be stressful. Start saving money on unnecessary expenses and investing it in the right places by leveraging these cost-saving hacks.