This is a pocket guide on how to cut business costs that you can use. Especially if you’re a small business that has a lot more expenses than profits generated, otherwise, you may be a successful business and still notice that your costs are incredibly high. Some people don’t realize that IT costs and workplace expenses affect everybody, including the average everyday entrepreneur (having internet for someone who works from home online and all of their software, etc.). With the first month of 2020 over, let’s see how we can help you cut business costs.
Table of Contents
Get the Right IT Management
The first way to cut business costs and take special note is that having the right network solutions can provide you with exceptional value and services. But in today’s society, there are so many additional servers and hosts out there that people are using. Please stop it. Just STOP IT…
If you have a dedicated server for your cloud or personal backup solutions, you can get a great deal of use by your plain old dedicated server by backing things up a little more. Rather than paying for new additional servers themselves, buy more space, and partition it correctly to have more backups in the right places. This may cause you to end up spending more upfront in some cases, but in the long run, you won’t have to pay as much, and you can benefit more from it.
Quit Paying Landline Expenses
You can cut business costs by using 3CX. When interviewing an IT company, see if they also manage VoIP.
Many companies don’t tell you that you’ll get a reasonable rate on phone lines, but when you have to have multiple lines as most businesses do, you may suffer because all of those small costs will add up. Many phone providers don’t tell you that their prices are per line. They also charge taxes, fees, and additional items per line as well. Then if you don’t spend extra on their long-distance service or have a company that handles international calls, you’re going to rack up the bills. Try switching to a quality VoIP company instead of providing the same results for a fraction of the price!
Cut Business Costs by Hiring Local
While it is a general practice these days to cut ties with our local country and get cheaper rates – you are also suffering more by hiring more offshore workers. It is impressive how patronage can affect people, not to mention the language barriers that entail hiring foreign companies to give your customers technical support. By hiring a local team or one that’s in-house with the right equipment, you can save a lot more money.
There are some call centers (and plenty in America) that are full of people who can speak excellent English, and you may even be able to cater to Spanish-speaking or multilingual people as well. When you hire offshore, you often lose this ability or have to hire a company that has a separate office that speaks the language that you’re looking for. This can lead to more expensive business costs.
Hire Lower Level Employees More
One good thing that companies are doing these days is similar to the “out with the old, in with the new.” Except for one thing – the people they’re hiring to get rid of their turnover rates are often the low people on the totem pole. They get faster promotions when someone higher up quits, and people will see how they need to watch their step more.
Spend Less on Advertising
By spending less on advertising, you can cut business costs significantly.
You probably don’t need to do all of the snail mail campaigns and late-night television spots. Try cutting those out and cater to your target market accordingly with the right marketing tools, and learn that social media advertising can even be cheap if it’s done right. It would help if you allocated about $1K per month to advertising online to pay-per-click ads. However, there are still great ways that you can integrate those into social media rather than suffering by paying for new advertisements on every platform.
Reduce Power Consumption
You can drastically cut business costs by purchasing energy-efficient light bulbs, smart thermostats, going paperless, etc.
Electricity is one of the primary elements that will suck your company and its pocketbook dry. Ensure that you adjust your power settings to your company’s budget, factor these into your expenses, and make some hefty comparisons when it comes to using and saving it. You may want to train your employees on things they can do to cut business costs for your company as well!
Final Thoughts to Cut Business Costs
Nope. These are just a fraction of the ways that you can decrease your business costs. Still, these days, since everything operates in an information technology world primarily, it’s essential that you get rid of all of the extra expenses so you’ll save more in the long run. It’s better to cut costs and gain more profit for your business!