Three Ways to Cut Costs for Your Small Business

cut costs for your small business

Even with the economy on the rise, it’s general good practice to keep a check on your business costs and see if there’s any room for improvement when it comes to savings. As the old adage goes, “a penny saved is a penny earned.” Here are a few ways you might be able to cut costs and save your small business some money in the long run.

Cut Costs for Your Small Business

Renegotiate Your Lease

Do you lease your store or office space and think you’ll stick around for a while?

You should consider talking to the property owner about lowering the cost by signing a longer lease. Committing to an extended time period may seem a little daunting, but if you’re comfortable with your location, renegotiating could save you a bundle.

Be Energy Efficient

Did you know that small businesses spend more than $60 billion a year on energy across the country? That’s a hefty chunk of change!

But with some energy-saving techniques, you’ll likely be able to cut some costs for your business:

  • Lighting: Are your rooms or offices lit even when no one is in there?  Consider putting motion sensors on certain lights. If there is no activity in the room, the lights will be turned off automatically. Be sure to use energy-efficient light bulbs, which typically use about 25%-80% less energy than the traditional incandescent bulbs we’ve used for so many years.
  • Temperature: Heating and cooling your office is necessary during working hours, but what about when no one’s at the office? If you can install a programmable thermostat, changing the temperate by 10-15 degrees during the night can save you 10% on your bill. The ideal temperatures are 68 degrees in the winter and 78 degree in the summer.
  • Paper: Surprised to see paper on this list? Consider the energy consumed in the paper manufacturing process – from harvesting trees to shipping. Check out these tips for reducing your paper use and ultimately, your paper costs.

Plan Ahead

Do you know when your vendors offer sales and discounts throughout the year?

Plan ahead so you can take advantage them. Many office suppliers offer deals on certain products at discounted rates throughout the year. If you see these sales, make note so you can buy at that time and plan to in the future.

If there’s a certain product you tend to need, consider buying in bulk to save money. Yes, you’ll spend more up front, but you’re likely to spend less per unit if you purchase more. Depending on the total cost of your purchases, you may qualify for reduced or free shipping. Being smart about restocking your inventory can go a long way, so be strategic – not sporadic – about order supplies.

Those are just a few ways you can consider to cut costs for your business. Start saving today.

Light Photo via Shutterstock

10 Comments ▼

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10 Reactions

  1. Great tips, especially the part about planning ahead. By knowing what you’ll need in advance you have time to scout the market and get the best deal.

  2. I truly consider following above fact on as how one should go on saving cost from their small business. Saving energy can be best foot forwards towards saving ideal amount of money, with further planning ahead also helps businesses to cover or handle any extravagant cost.

  3. Great tips.

    I’m always into doing whatever it takes to reduce energy costs around the office-and at home in my Castle.

    The Franchise King®

  4. I agree with being energy efficient. It may not seem like it has an impact but it does. However, this can only work if you look over your employees else they will just waste all of your resources. Well, at least it is better to be on guard.

  5. As a freelancer (I guess, in a way, a small business of one), I try and keep my energy use to a minimum. I wear layers and a blanket before the evening’s cold arrives, rather than wait ’til I’m cold (which would involve turning the heating on or making a couple cups of something hot).

    I turn off anything I’m not using from the mains. I also shut down my computer when I’m not using it, rather than put it on standby.

  6. I think a great area that you can cut cost in is marketing and sales. Find out how much your spending to acquire new customers/clients to start with. Then, find ways to make the sales process more efficient and reduce your cost per acquisition by utilizing some inbound marketing techniques. There is a huge shift to this focus in business and I think more small businesses should start adopting this focus to help reduce the cost to due business.

  7. So glad you mentioned paper! Paper is an expense that is often overlooked. It effects your space costs, employee time costs, and not to mention the costs of the paper and ink materials alone. I think it’s well worth looking into how much paper is costing your business verses implementing a cost effective business process management software that can help you manage and control your papers more efficiently and save your business valuable time and money. Could your small business save more money by going paperless – http://blog.2ezdata.com/post/would-you-could-you-go-paperless-in-your-small-business?

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