Trying to better balance your bottom line is something pretty much every business owner does. Ensuring that they are making the most profit out of minimal input is the aim. One way to ensure that you are doing this correctly is to focus on all your outgoings. By looking at your expenditure and finding ways to minimize this, you will have more profit that can be rolled back into the business. So, let’s take a look at some ways you can reduce the cost of doing business:
Staff can be both a blessing and a curse. Realizing that you have employed someone who is not only unsuitable but brings down morale and does minimal work can be extremely frustrating. Employees have rights, but you also have the right to protect our business. That means you need to get tough and sack the people who are not the right fit. This opens up space for someone better. To sack someone, you need evidence, so all employees need files when you monitor their progress, give them warning, and chances, until eventually, you can sack them. This has the effect of losing the weak link and making your other employees respect you more and less likely to be bad apples. Another strategy is to reward hard work and only offer certain benefits to staff that pull their weight. That means you are reducing the costs of these schemes as well as motivating through these tools.
Are you actually making proper use of the workspace you have? Would you be better off finding a smaller and, therefore, cheaper space elsewhere? Rent can be a huge expense and if you are not using the space efficiently, then maybe it is time to move somewhere smaller. If you own the building, perhaps you could section off parts you are not using and rent those out to other businesses.
A lot of money will be going to your supplier. This is in parts for your products and other things such as office supplies, water fountains, gas, electricity, etc. There is no harm in speaking to each of your suppliers and asking for a reduction, or a discount on the amount you are paying. The harder you negotiate, the more likely you are to win. Do not take no as a final answer. Also, it may be a good idea to hunt about for better deals elsewhere; these can be used as leverage in your negotiations.
There are many different types of insurance you need for your business, including liability insurance for small businesses. If you have not looked into your instance policies for a while and have just renewed every time, then you may be paying for insurance you no longer need or are paying over the odds. Do some investigation and discover if you can get the same policy elsewhere. Additionally, if you are using more than one insurance provider for different insurances, you may well have some overlap now, meaning you are paying twice for the same product.