Five money saving tips for business owners

For most business owners, a primary goal is to improve profit margins. This can be achieved in two main ways – either through increasing revenue or decreasing expenditure. Increasing revenue is often the longer-term strategy and will, in many instances, require a large amount of time, effort and cash-flow. As such, many owners will instead opt to focus on improving their business’ efficiencies and reducing costs.

 

How can owners do this effectively? Here are five quick tips:

 

1.       Monitor energy consumption: with energy bills steadily rising, it is becoming increasingly important for businesses to pay close attention to their electricity use. In many cases, businesses will be able to reduce their energy costs to a considerably degree by simply implementing a policy of turning off electrical equipment/devices at the end of each working day. For businesses that have the capacity  to invest some up-front capital, laptop computers might also be an beneficial option; it has been widely reported that laptops consume 90 per cent less energy than standard desktops;

 

2.       Build partnerships with other businesses in your area: taking the time to develop synergies and relationships with other local businesses can pay considerable dividends, if done successfully. To this end, there are a number of strategies that can be employed including, but not limited to: splitting advertising and promotional costs; sharing contact lists and distribution channels; forming buying alliances to negotiate competitive deals on goods and services; and developing strong referral networks;


3.       Where possible, go digital: by embracing digital forms of communication and marketing, you can save your business costs on ink, paper, distribution and printing equipment maintenance. For example, rather than mailing out physical newsletters to clients and prospects, consider distributing eNewsletters; these are arguably just as effective, but cheaper and better for the environment as well;


4.       Buy in bulk and develop strong relationships with suppliers: attempt to build relationships with local suppliers who might be able to provide your business with products and materials at low prices. Furthermore, see if you can negotiate deals with suppliers to get discounts for making bulk purchases; this might incur greater initial outlays, but you will likely make hefty cost-savings over the long-term;


5.       Invest in professional development: one of the best ways to save money is to develop the skills and expertise of your staff; doing such can work to improve employee performance, productivity, efficiency and morale – all of which usually have a number of attached cost saving benefits. 

Posted by George Tarbey on 30/11/2012 at 12:00 AM | Categories:

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