Wednesday, 30 November 2016 00:20

3 Effective Cost Cutting Ideas for Your Small Business

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While it’s always a  good idea to concentrate on ways to bring in new customers to your business and ramp up revenues, as a result, don’t forget that you can help your cash flows significantly by cutting costs around the office, too.

When it comes to saving money in the workplace, there are many innovative ways that you can get ahead without feeling like you’re tightening the purse strings too much. Read on for some tips for cutting costs as soon as possible, that you may not have considered just yet.

1. Crowdfund for Capital

Whether you’re operating a fledgling startup that you’re just trying to get established, or currently run a solid business that has been around for a while, you will probably look for a loan or investment capital at some point along the way to help you grow your organization. If this is the case, keep in mind that you may be able to cut costs by crowdfunding for capital rather than paying for expensive bank fees and interest rates.

In this digital age, technology and the rise in crowdfunding sites such as Kickstarter and Indiegogo mean that it is easier than ever to access a cash injection by unconventional methods. You can now connect with customers and investors who are keen to back your venture’s mission and product offerings through third-party sites which handle the paperwork while also giving you the chance to reach out to a receptive audience.

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Do you, for example, need to raise some money to create, introduce, or try out a new product, or perhaps purchase an important piece of equipment for the production of certain goods? If so, you may be able to raise the money you need online, through a crowdfunding website instead of going to a bank or other lender.

You usually won’t have to pay too much in the way of set-up fees to list your information on a crowdfunding site, and generally, don’t have to worry about expensive interest rates on the capital you raise either. Most crowdfunding investors simply want to receive a product when it is made or other low-cost goodies such as posters, T-shirts, key rings, signed copies of books, and other investment incentives. These are all usually much less expensive for a business to come up with than what they would have to pay when obtaining funds from a more traditional lender.

2. Use Free or Low-Cost Information

Before you go and spend lots of money on lawyers, accountants, financial consultants, and the like, it pays to remember that fees for such services can rapidly add up and end up costing you way more than expected. To save some money then, you should do everything you can to minimize the billable hours racked up by every consultant or service-based business you deal with.

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Keep in mind that you will find a lot of valuable information and other resources for free (or just a low cost) online, at libraries, and through business or other groups that help entrepreneurs. You may even have mentors, colleagues, or family and friends who can provide you with the information you need. Even just spending some time searching through the results on a search engine such as Google can provide you with a lot of the information you might have had to pay for in the past.

If you want to save some money consider, for example:

  • Online legal sites which provide free or reduced-rate legal agreements and case-law information
  • Accounting programs which provide tutorials, videos, and other step-by-step information to help people keep their bookwork in order and read or create reports
  • Free and low-cost photography websites which provide images you can use for your marketing and other tasks

3. Utilize Freelance Websites

No matter the type of business you run, you will likely have to, at some point in time, engage in activities such as graphic design, content writing, social media marketing, video creation, and the like to promote and grow your business. If you don’t have the skills and time yourself to handle these tasks or have the staff on hand to do it for you, you will have to outsource the work to a company or contractor that specializes in each area.

While this used to be quite expensive, these days you can save some cash by trying out services on websites like Freelancer, Fiverr, and Upwork. It is important to be discerning when you select a person from those advertising online, but it is definitely possible to find experts in their field who charge a lower rate than traditional, larger outfits.

Due to the fact that many professional service providers now work from home and don’t have to pay for large overheads such as an office or retail space, they can charge more affordable rates. These savings can then be passed on to other business owners.

Author:  MELISSA THOMPSON

Source:  http://www.lifehack.org/

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