Consider the following eight tips from business professionals around the country to reduce expenses.
1. Be aware of your inventory. Supply and Demand are not only important in pricing for products or services. This is also important when it comes inventory levels. Profit is not affected by ordering more than you actually need. Inventory-tracking software is one option. It can automatically do the job.
2. Do not take financial statements as a given. It’s possible to be surprised by the simple clerical mistakes that can add up.
3. Modify marketing. It is essential to get the word out. However, it is important to evaluate the effectiveness and cost-effectiveness. Don’t rely on sales representatives to tell you what the best marketing strategy is. Do your research. You might also consider free promotional activities, such as cultivating regional/local media contacts.
4. Partner with other companies. Find a company that has similar needs and form a partnership that benefits both. These types of relationships are possible through local business associations.
5. Do salary surveys. It is possible that you are not paying enough to your employees, leading to them leaving and increasing the cost of hiring new workers. Every year, conduct a survey of your industry to determine where you are at the moment. You could save money by paying a fair rate or slightly more in the long-term.
6. You can outsource your work. This will free employees from repetitive tasks. You can do this by reviewing the secondary tasks of employees and deciding if they can be done by temporary workers. This could be payroll, updating websites or other tasks that can be performed more efficiently by another person.
7. Profit sharing is a great option. While it might be costly initially, workers will start to care more about the bottom line of the company. The company that makes more money will make more money. When your pocket is affected, the incentive to save money increases.
8. You can forget about 411 and replace the idea of calling directory assistance with the requirement that you use a phone directory. Directory assistance is free and available for most commonly used areas. While directory-assistance fees, unlike other small office expenses, are not significant, taken together, they can add up to significant costs. A penny saved is a penny gained.