October 23, 2014

10 Ways You Can Cut Business Costs Today

cut business costsSmall businesses are seeking ways to tighten their belts and cut business costs without sacrificing growth. As a small business owner, you can cut costs simply by reducing incidental spending.

For example, some businesses are buying less paper, staplers, snacks and coffee machines to tighten their budgets, according to a recent report from Sam’s Club where many small companies buy these items for their offices at a discount.

However, making choices that lead to a more efficient and effective organization is a better way to cut your business costs while boosting profits. Here are 10 approaches you can try:

Cut Business Costs Through Better Planning

Create a Dynamic Budget

Don’t let your budget be a static one, created at the beginning of the year and almost never consulted again. Small business consultant Brad Farris explains how a dynamic budget checked regularly and adjusted as your business evolves can tell you when it’s time to invest more in marketing and when to cut business costs by waiting on that bigger office. He also shares an e-book on how to create a dynamic budget of your own. Initiative for a Competitive Inner City

Get Serious About Internet Marketing

At first this might seem like a marketing tip, but behind it lurks a question about the efficient use of your company’s resources. Claiborne Yarbough, the business development manager for North Carolina-based inbound marketing agency Paveya, explains the dangers of scrimping on Internet marketing and suggests moving more of your resources to the Web for better, more consistent results. Resource Nation

Do Some More Research

You may think market research is just for huge corporations. Not so, writes Maryalene LaPonsie. First, market research can be done cost effectively without devoting much budget to the effort. Second, research is a first step to developing specific, measurable, attainable, realistic, and timely goals for your business, giving you the best results at the least cost. Small Business Computing

Keep Your Focus Strong

Focusing on a few key areas will maximize your profits while cutting business costs, suggests Steve Greenbaum. Improve your brand’s image, identify website objectives, optimize your Web presence, practice good accounting, and be disciplined about customer acquisition. Following these tips can increase your chance of success while cutting unnecessary costs. Fox Small Business Center

Borrow From the Big Guys

Software entrepreneur Russ Warner has simple but effective advice for making your business perform like a much larger company without the big budget. Simply borrow best practices from other organizations and add instant sophistication to your own while you cut business costs. Warner runs down some basic ideas that have served him well when improving his sales team. Huffington Post

Hone Your Message

Okay, this may seem like just more sales or marketing advice. But remember, time is money. Building a unique business message allows you to articulate your value proposition, explains Michael Bowers. This will decrease the time it takes you to close new sales, saving you money while increasing revenue. Bowers discusses a few simple ways to create your unique message today.  Ideas to Deals

Lower Costs Through Better Technology

Use WordPress for Your Web Presence

Greg Taylor lists six reasons your business should consider flexible content management System WordPress when developing your online presence. In addition to all of its other great features, WordPress may be one of the most affordable resources in its class, helping you cut business costs. It’s an option Taylor insists is good for any budget. Business 2 Community

Don’t Pay Too Much for Web Development

Of course, guest blogger Miranda Marquit insists you should also be sure you don’t pay too little. Marquit gives a guide on how to find reasonably priced developers for your Website as a way to cut business costs. Pay too much and you’ll deplete your funds. Pay too little and you may find the cost of countless errors too much for your budget to bear. Don’t Do It Yourself

Embrace Cloud-based Accounting

Cloud-based accounting is a way to cut business costs on expensive software you need to maintain your ledger. These solutions will save you money in another way too: They’re a more efficient way of keeping an eye on your budget and identifying other places you can cut costs. Here are five inexpensive cloud-based solutions to meet your needs. CIO

Outsource Everything

Well, maybe not everything. One way that technology cuts business costs is by letting us cheaply and easily outsource tasks we don’t have time or talent to take on. Hiring employees to do some of this work would be costly and impractical. Gina Rushton shares these suggestions about jobs that might be easier to outsource. Dynamic Business

Cut Costs Photo via Shutterstock

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Shawn Hessinger - Editor


Shawn Hessinger Shawn Hessinger is the Editor for Small Business Trends. He is a journalist and social media networker with more than a decade of experience in the traditional newspaper business before moving to the digital world. He was the former community manager of BizSugar and the former community editor at AllAnalytics, a site dedicated to professionals in the business intelligence and analytics community.

11 Reactions

  1. Concerning the comment about internet marketing: The trackability and therefore accountability of the channel is virtually unrivaled by more traditional channels. How often do you have metrics telling you the ROI of every dollar spent? Internet marketing can do that.

    • Hi Robert,
      Internet marketing certainly allows for a huge amount of data collection. Though the field of analytics continues to make inroads into the offline world too, monitoring the effectiveness of online campaigns is still one of the cheapest, easiest, and effective things for a small business to do.

  2. Great tips, Shawn. It’s important to frequently evaluate your operating costs and make cuts where necessary. I’ve found that I only need a few core things to run a successful online business. All the other bells and whistles aren’t necessary.

    Ti

  3. Hi Ti,
    I definitely agree. So often in small business it is not about what you have but about having what you need. When you consider the necessities and cutting out what’s not important for your success, it becomes easy to make decisions about maximizing efficiency and stops being about making painful cuts. Thanks so much for commenting on the post and in the BizSugar community.

  4. Hi Shawn,
    I think the point about creating a dynamic budget is the most interesting here. Of course, reviewing your budget on a regular basis instead of setting it aside and forgetting about it is a no-brainer. But the idea of creating a budget that can be adjusted month to month or even week to week as your business and the market change has obvious benefits. Thanks for sharing this with the BizSugar community.

  5. Outsourcing time consuming aspects of your business such as bookkeeping, accounting, and payroll is a small investment that provides great returns. You save time and stress of having to do these tasks in house, and (especially for small businesses) time is money.

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