6 Smart Ways to Reduce Business Costs

Sun, Mar 9, 2014

Financial Advice

Running a business of any size is expensive, and it is vital to look for ways to reduce your operating expenses so that your company can become profitable enough to survive. Unfortunately, many business owners fail to utilize simple techniques that would make it much easier for them to hit their financial goals. With this in mind, owners should take a step back and analyze all of their cost-saving options so that they stop needlessly wasting money.

1. Switch Phone Service Providers

Phone service is essential for all businesses, but it can also be one of the major drains on your budget. Therefore, you should carefully consider leaving landlines behind and make the switch to VoIP in order to reduce your monthly communication expenses and increase worker productivity. In fact, one of the main perks of utilizing the VoIP option is that your employees will be able to make and receive calls on behalf of your company from anywhere with an Internet connection. Additionally, the average cost of VoIP will save you approximately 50 percent over a traditional landline.

2. Embrace Telecommuting 
It is becoming increasingly popular for businesses to allow employees to telecommute at least one day per week. In order to get the most out of this method for reducing expenses, you should have every employee telecommute on the same day. For example, some companies only open their office Monday through Thursday, and everyone works from home on Friday. This will enable you to save money on overhead costs such as electricity.

3. Focus on Energy Usage 
When everyone is in the office, you will still need to remain cognizant of your energy usage. To keep everyone comfortable, it is a good idea to invest in better windows and insulation so that you can save money in the long run on heating and cooling expenses. Additionally, transitioning to compact fluorescent lighting as each of your bulbs burns out will have a measurable impact on your electric bill.

4. Negotiate Payment Terms 
Many suppliers will offer you a slight reduction on your invoices if you agree to pay them early. Another option to explore is whether or not your vendors will give you a discount for using their preferred payment method such as check or cash. Even if you only save one percent off of each bill by taking this approach, it will add up quickly.

5. Purchase Secondhand Equipment 
If you are in the market for new office furniture or a photocopier, it is best to look into businesses that are in the process of liquidating their assets so that you can get great deals on secondhand equipment that is no longer being utilized.

6. Avoid Unnecessary Travel Expenses 
Many industries require a certain amount of travel in order to connect with clients, but this does not mean that you need to spend an exorbitant amount of money. Instead, you should opt for coach class plane tickets and two star hotels. You can also cut out many travel expenses by avoiding unnecessary trips to industry conferences that will not enable you to meet up with any clients.

Putting all of these techniques in place will be relatively simple, and they will allow you to save a lot of money on an annual basis. Therefore, it makes good sense to take advantage of options such as switching to a VoIP provider and buying used office equipment. After all, as long as everything still works properly, there is no reason to willingly pay more money for something comparable.

As a business owner, Lisa Coleman understands the financial strain that can come with running a business. She has researched http://www.avoxi.com/voip-solutions/ and read about the benefits and savings utilizing a VoIP service plan can have for a business.

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