5 AweSME Cost-Cutting Strategies for Small Businesses
As an entrepreneur, you go to work ready to aim for the skies – but on a shoestring budget. If this is the story of your life, here’s help. We give you 5 simple yet highly effective strategies to cut costs for your small business.
AweSME Strategy #1: Analyze your supply chain
Spend some time studying your key vendors. Are they offering you the lowest price in the markets? Could you negotiate the terms to get better pricing or more flexible payment terms this year? If not, maybe you should consider switching vendors. Given that you have to make vendor payments at least 12 times a year, small savings could really add up!
AweSME Strategy #2: Review your utility bills
Review your phone, Internet and electricity bills to uncover 2 hidden money-pits:
- Redundant services
- Unnecessary fees
You may realize that you don’t really need 3 telephone lines or very high Internet speed. Change your utility plans to serve your business needs without paying extra for add-on packages you don’t need. Also bundle two or more services from the same company. For instance, opting for a phone-cum-Internet plan from MTNL/BSNL could cost less than getting these services from two separate utility providers.
AweSME Strategy #3: Change the way you hire
Finding and hiring new employees is expensive. And once you hire, you have to spend even more time and money on training, sick leave and casual leave. Smart businesses are opting for alternatives like remote workers. The Internet allows you to find and hire highly qualified professionals who will work from home on a freelance or retainer basis at a fraction of the cost incurred when hiring and retaining in-office employees. These professionals post their portfolios on freelance job portals. You may browse and pay for the exact skill set you need for exactly the amount of time you need it, without incurring any other mandatory costs.
AweSME Strategy #4: Go paperless
About 40% of print-outs are discarded within 1 business day. Considering how much money you spend on printing equipment, supplies, paper and labor, prints turn out to be a shocking and unnecessary waste of resources.
Instead, opt for electronic file exchange and storage. Services like Google Drive and Dropbox allow you to store and share files electronically for free. Also opt to send e-invoices to clients to save on paper, ink and courier costs.
AweSME Strategy #5: Promote on the Web
Your target audience needs to view your advertising message at least 7 times before they will consider purchasing your product. If you continue to use only traditional media like radio, television and outdoor advertising, your promotional costs could go through the roof.
Consider harnessing the power of social media to engage your audience. Twitter, LinkedInand Facebook could give your product top-of-mind recall for free. Even premium services over the Internet cost a negligible amount when compared to the cost of using traditional advertising media.
Use these simple strategies to reduce unnecessary costs and maximize profits. After all, every rupee saved is a rupee earned for a small business.
As a small business owner, you are always looking to bring in more business with increased profits. Lowering the expenses is the primary agenda of any startup entrepreneur. DBS Bank can help your small business turn AweSME. Find out how.
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