5 Universal Ways to Cut Your Business Expenses
It doesn’t matter what kind of business you manage, whether it is a small local company or a large firm with three-digit staff, an opportunity to cut costs is always welcome. Here we’ve gathered 5 universal ways to decrease your costs or even found the entire business model on.
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Outsourcing
Virtually any business can benefit from outsourcing. IT companies can hire affordable specialists from China and India, while businesses working in manufacturing and assembly of physical goods can easily avail of ample production capacities of nearby Mexico. The process doesn’t have to be long or difficult – there are companies specializing in quick and reliable establishment of new manufacturing facilities for outsourcing businesses that can make the transfer to foreign labor fast and affordable. NAPS Mexico Manufacturing, for example, can establish a new manufacturing operation in as little as 3 months. For smaller companies there are always services like Elance and oDesk that can greatly help in outsourcing their non-core capacities.
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Negotiating Prices with Suppliers
photo 401(K) 2012 via Flickr
Most suppliers are open to discussion when it comes to prices; you should understand that your prior agreement isn’t set in stone and is subject to change if you decide that conditions in which you have to work have altered. It is especially true in current economic climate – a supplier may consider that lowering prices is preferable to losing an established client in times when finding another one is not guaranteed. It is a normal business practice – just try to find some leverage, like another supplier offering lower prices, prior to entering negotiations.
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Telecommuting
If your business is at all suitable for this arrangement, you may save on the cost of office space by sending some or even all your staff to work at home. Depending on what kind of people you hire, it may also greatly improve the morale and efficiency of your employees, as they won’t have to waste time in traffic jams and will work in more comfortable environments. However, remember that it is suitable not for everyone – some workers thrive in office environment, others wouldn’t be capable of maintaining discipline at home.
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Bringing in Interns
Many businesses use temp agencies to perform less-qualified tasks that arise from time to time and don’t require hiring somebody full-time, but their services are often expensive. Instead, you may contact your local college and ask if they can offer you interns. Students are often ready to work for low fees or even free of charge, especially when they are getting a credit out of it.
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Going Paperless
Cutting out paper is one of the few ways of making your business greener while saving money. According to Xerox (and they are supposed to know), about 40% of office paper is discarded within 24 hours of someone printing on it. Combined with the price of printers, copiers, papers, printing supplies and associated labor, it can cost you a pretty penny – while using electronic file storages is capable of saving it.
Cutting expenses is a continuous and creative process – there are always ways to make your business waste less resources without harming its productivity; you just have to find those that work for you.
Guest Author: Melissa Burns
