Do you cringe when you hear the words “cut costs”? Do you have more money going out than you have coming into your business? If so, it may be time to consider money-saving measures to rejuvenate your bottom line.
If you’re unsure where to start, thirteen entrepreneurs share their recommended cost-cutting tips to help you gain control of your finances and work smarter from the ground up.
1. Understand “need” vs. “want”.
“In my experience, most people don’t have a clear line between what is needed and what is wanted. By truly drawing and sticking to that line, you realize a lot of things “companies need” are actually things that “companies want because other companies have [them].” Then you add things as your company actually needs them and not before.”
2. Ask for pricing incentives.
“Most people never actually ask for a discount or ask the person they are buying from if they could do better on the price. Asking for discounts allows the seller to come up with the price, which usually is lower than you would have asked. If they do come back with a less than stellar offer, then you can ask for a specific price.”
3. Don’t waste money of fancy office space.
“Having an office can be isolating, and it is also an overhead expense that is not necessary in today’s society. There are many ‘pop-up’ offices and public spaces (i.e. coffee shops, coworking spaces) that are now set up for the new generation of [remote] entrepreneurs and business professionals. Besides being nearly cost-free, these spaces foster growth, creativity, and communication.
4. Create business systems.
“The best way to save money is to systematize! Not only will this save your business money, but it will also make every process of your business easier. Everything can be systematized, from your company’s hiring process to how each customer call is handled.”
5. Build a talented in-house team.
“With the right mix of talent on your team, you can handle those expensive operations and activities in-house. Our expert company website which was projected to cost us between $2,000-$10,000 came free because we had the team [design and develop it]. A balanced and competent team is essential.”
6. Outsource tedious daily tasks.
“Most entrepreneurs think everything is done faster and better with their own two hands. But in the long run, most will expend far more resources and money doing these lower level tasks themselves instead of freeing up that time for high-level tasks by outsourcing the more tedious ones.”
– Richard Savoie, Founder and Owner of Engineers Looking For Stuff