7 Ways to Cut Costs in Your Business

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In business, costs are something that you should always keep under control. That means reviewing your costs on a regular basis to ensure you are operating as efficiently as possible. Here are seven things you can look at to cut costs in your business. 

  1. Change Your Approach to IT

You can cut costs in your business by changing the way you purchase and use IT. The biggest savings can be made when you switch to cloud computing solutions and SaaS applications. Cloud computing solutions are managed in the cloud and are delivered to your office over the internet. This is different to the traditional method of having physical equipment and wires in your building. You can use cloud computing to reduce the number of PCs in your business as well as cut down on storage, email servers, and more.

SaaS stands for software as a service. It means paying a monthly fee for software applications instead of a large one-off cost. You get the benefit of lower upfront costs plus SaaS applications are fully managed, lowering your costs in the long run too.

  1. Explore Different Communication Options

Some communication costs are inevitable, but there may be some you can reduce. This particularly applies to internal communication. For example, can you do a better deal with your mobile phone supplier so the cost of calls between members of staff is minimised or reduced? Also look into the possibility of implementing a VOIP system in your business, or increasing your use of Skype and similar applications.

  1. Travel Less

The easiest way to cut the cost of travel expenses is to travel less. This is possible by better planning, and by using technology. For example, booking flights in advance, and conducting meetings on teleconference or video conference calls instead of in person.

  1. Get Smaller Premises

Moving to smaller or cheaper premises is another way to cut costs in your business. This is probably the most difficult option on the list because of the amount of work involved, but it can deliver significant medium to long term savings. If you operate from multiple locations, you can explore the feasibility of reducing the number of premises you operate.

  1. Shop Around and Negotiate

Negotiating with suppliers and regularly shopping around for better deals is crucial to ensuring your cost base is as low as possible. So long as you maintain quality and customer service levels there is little downside.

  1. Collaborate More

Shopping around and negotiating with suppliers will help with costs, but it is an approach that will only go so far as every business is limited by its spending power. You can improve your spending power by partnering with other businesses – businesses in the local area, or with other business colleagues. You may be able to strike better deals when you approach suppliers together than you would by doing the deal alone.

  1. Outsource

Outsourcing tasks is another way to cut costs. The internet has made outsourcing a possibility for businesses of all sizes, including micro businesses and one-person operations. It has its pitfalls, and you will need to do full research. You should also get advice from other people who have done similar outsourcing before. The savings can be substantial, though. You can make savings on the actual cost of the task, plus you have the flexibility of working on a pay as you need basis.

To get more help and advice with your business please contact a member of the Gilroy Gannon team today.

Posted in Tips.