How to Cut Costs and Be Efficient

As a business owner, you are probably constantly looking for ways to increase profits and increase business. At one point in time, you have most likely thought of cutting expenses to help boost profitability. Technically, it doesn’t matter if you’re having the best quarter in history because when it comes down to it, costs that are out-of-control will quickly eat up any profits that you gain.

Avoid going under by keeping a close eye on your expenses (you can use a business accounting tool). While cutting expenses can help greatly, be smart about what you cut. You don’t want to sacrifice efficiency for cost.

Here are some tips to being cost effective when making budget cuts:

• Try out a new telecom system. This can range from Internet to landlines to wireless providers.
• Enforce the “no splurge” business travel rule. This technically means that your staff cannot spend whatever they want when they travel. Make them accountable for what they spend.
•  Move your IT network to the “Cloud”. Whenever you have the chance to move digital files and other software off your computer to another place- do it.
• Cut back on overtime. Switching from a time clock that uses paper to a computerized time clock is a great move. It saves you money on multiple fronts.
• Earning vendor discounts using credit is smart. Early payment discounts offer by a selection of vendors can save you thousands of dollars a year.

Cutting your expenses should only mean one thing: you gain more profit. By viewing these areas, you will hopefully be able to maximize your profits without losing efficiency.

Coping With Rising Costs

Credit: askmen.com

Business owners are always searching for ways to keep up with the rising costs of keeping the doors open, turning a profit, and keeping up employee morale. It's not always easy to meet all three, but it is essential for the entrepreneur to not only survive but thrive. There are several ways employers can effectively address the rising costs of doing business and we offer you a few to consider.

Two great ways to lower costs of doing business is networking and bartering. Networking events are a great way to meet new individuals who may offer lower prices on the goods and services you need. Additionally, many business owners are turning to bartering as a way to save cash for items that can't be bartered. Barter typically requires little or no cash and you may find ways to barter for rent, office furniture, printing or even professional services.

Try to make purchases in bulk or at wholesale stores. Buying bulk typically allows you to save over cost per piece prices. Shop around for prices from local bulk stores or through online wholesalers.

Consider renting or borrowing less-used pieces of office equipment. Do you host occasional training conferences for which you need a projector? Rent one for a week. Consider renting a copier or industrial strength printer when the need arises rather than paying an ongoing contract fee.

Plan ahead for big ticket purchases you know are looming. When you know you need to update, start checking sale ads, scour close out sales, garage sales or even message boards for going out of business sales.

Have you tried to negotiate a discount on the products and services you use on a regular basis? If you have a long term relationship with a supplier, chances are he or she might be willing to negotiate a better price as a way to keep you as a client.

When it comes to employee costs, consider installing a time clock - either virtual or physical - as a way to lower costs. If your employees can log into an online time keeping program you can save costs on time and payroll calculation at the end of the pay period. Virtual time clocks are a money saver in myriad ways.