ENT 655 Week 5: Some Cost Saving Ideas
Whether you are a startup or already running a small business, finding ways to reduce maximum business costs is one of the crucial goals. It will be struggling later if you don’t have a detailed cost-saving plan in place from the beginning of your company. Reduce costs will improve the cash flow, efficiency and help increase profits for the business.
As a homeowner and entrepreneur, I experienced many people complained about how expensive of some services that they have to pay and also about how hard it is to keep the business off the ground while spending less. Here are some ideas to consider:
- Go paperless: It is evident that doing business nowadays almost everything is using electronic. As a real estate agent, I see the increase of the clients that they expect nearly everything to be accessible from their smartphone, so you must be a digital savvy business person. For business owners, this is an opportunity for saving time, saving money on papers, inks, printing, storage, etc. It is convenient too to use electronic sign documents for any contracting such as e-signature or docu-sign. Something else available is e-invoicing by email that sends the invoice directly to your customers just by one click. These tools can reduce print and postage expenses. Your files, documents, and records should be scanned and be easily researchable and accessible on digital archive, from anywhere.
- Always ask for a discount: If you work with different vendors and or wholesale, they may have quantity discount or some seasonal discount for the year. Don’t be shy to ask for some percentage discount with your regular suppliers and ask them how to meet their requirements such as customers credits, vendors credits, or paying at a lower price if paying early or upfront. Remember that most of the time if you do not ask they will not offer such discounts.
- Switch bank: to save your company’s money in a long run, avoid any fee charge that some banks are trying to squeeze for more profits such as ATM surcharge fees, bounced check fees, debit card fee.
- Bundling services: your business would save a lot of money by working with the same partners or companies who offer bundled services that include the computer, internet, web hosting, cable, fax, etc. New fiber optics is a good example that can do most anything you want from phone, TV, internet, streaming movies, fax, video phone and much more.
- If your company needs propane for heat or equipment, you may want to consider buying the propane tank. If you rent a tank, you are locked into purchasing fuel from one company that will not give you discounts past the first fill up. If you own the tank, then whoever has a special price going on, you can take advantage of that and save a lot of money for the company. I have personally experienced a $1.65 difference in gas prices if I owned or rented and on a 1000 or 2500-gallon tank that is a noticeable difference in the bottom line at the end of the year.
- Banks and some other businesses that you already dealt with for a long time may cost you more. They use the strategy that if they go up at an X amount of percentage of price, knowing that they may lose some to the competition, but it is not a big loose for them in exchange for higher charges to increase their profit. Most people will never notice or being too lazy to change or don’t know or don’t ask, and therefore these charges will eat up their business profit. Keep all your accounts in check and see who is doing something new and better out there. Technology should make prices come down in time, and many established companies do not follow that thought pattern.