As a small business owner, you should always be on the lookout for new ways to expand the bottom line. Bringing in additional sales or reducing your expenses can contribute to the financial stability of your company, however, there are plenty of methods through which you can accomplish both, as we’ll see below. With these corporate strategies to control costs, you can make the most out of your small business.
Pool purchasing power
While the business amateur feels they should work separately from the competition in order to maximize potential, the true professional sees value in partnerships. By forming agreements with other small businesses you deal with regularly, you can reduce costs by creating a mutually beneficial relationship. For example, you might offer each other discounted goods that promote both your causes by reducing your expenses. You can also work to increase your corporate visibility by tapping into your partners' target audiences, as well, if relevant. As you can see, forming these types of partnerships is a great way to boost your profitability with ease.
Choose green strategies
These days, more and more people are seeking businesses that take care of the environment. If you wish to garner more “green” sales and improve your profits, you should consider these planet-friendly strategies. Some can also reduce your costs!
- Cut down on paper use and go digital instead
- Choose energy efficient appliances and devices
- Use sensors to switch off electricity automatically
- Choose email marketing instead of direct mail campaigns
All of these will help to boost your image, in the community, and amongst your competitors, showing you care about the planet while simultaneously lowering your expenses.
Sharing office space
If you are running a non-brick and mortar small business, you may have discovered that the average commercial setting is too large. In this case, there is a far more cost-effective option: simply rent a furnished, shared office for your company. In this case, you will cut back on your monthly rent while still having a professional setting in which to work. The good news is that these business centers are typically found in some very central locations, a quality that can then boost your customer numbers and further the sales your business brings in.
One of the biggest costs of any business is staff wages. After all, hiring a number of full-time employees isn’t cheap due to the benefits you must provide, office equipment that must be available, etc. If you can’t afford these costs, you should consider hiring a team of contractors instead. They will work on an hourly basis, ensuring you only have to pay them when they’re actually doing something for your business. On top of this, contractors specialize in a specific field, ensuring you can then tap into this knowledge and experience solely when you need it. You’ll also have the services you require without having to pay wages while they are idle.
Using virtual services
Another option is to utilize the many virtual services out there. For example, if you wish to branch out to a new location but don’t want to spend too much, you can:
- Use a virtual assistant for the tasks you don't have time to complete
- Use a mail handling service to receive and redirect letters and parcels.
- Hire a telephone answering service so local customers can contact you.
All of these options will be far cheaper than renting an entire office when starting up your new branch. Even though there’s no physical setting, you’ll still gain a highly professional image, especially if you choose the right virtual providers. These five tips highlight how many alternatives are available when it comes to reducing your expenses by getting organized and increasing sales. After this, you can then streamline your cash flow, getting the most out of your company, no matter what industry you’re in!
Shonda Smith writes for Regus, a global company with headquarters in Luxembourg, yet operating in almost 100 countries. They specialize in offering serviced offices along with other commercial spaces for rent.