How To Cut Business Costs And Increase Profit
How To Cut Business Costs And Increase Profit : Today’s business is a competitive format for generate income .To compete in the business word it is compulsory that your product or services is competitive cost.Business cost may directly effect on product cost. So there are some tips to how to cut business costs and increase profit.
Pay Invoices Early
Take advantage of discounts suppliers offer for paying invoices early. Often trade terms offer 2% off for payment within 10 days.you can also negotiate in raw material prices with early payments.
Find Cheaper Space
Get bargains on new office space or renegotiate better terms on your current lease now that real estate markets in many areas are tilting in tenants’ favor.
Reduce Energy Use
Switch to compact fluorescent lighting to save electricity. Cut your heating bill with better insulation and windows. On the road, slow down and use GPS systems to boost mileage and reduce fuel costs. Use renewable energy in office use.Buy low energy-consuming devices and try to use sun light as much as possible. You will be surprised how much you will be able to save with natural sunlight and with open windows.
Adjust your marketing and advertising
To keep your marketing and advertising budget in check:
- Switch your advertising efforts to new media, if that’s where your customers are. It can be cheaper to advertise online, and costs only your time to establish a presence on popular sites such as Facebook, Twitter and LinkedIn.
- If you have a website, be sure to let people know the web address. Put your web and email address on anything printed, such as letterhead, business cards and ads in the paper or phone book.
- Develop an e-newsletter to stay in touch with your clients. It’s usually much cheaper than producing printed pieces.
- Scour your mailing list to remove duplicate names and bad addresses that cost you unnecessary dollars.
Reduce the telephone expenses
Reduce the telephone expenses or we can even disconnect the office landline connection and if you are a small company, allow your employees to make calls from their mobiles and at the end of the month, the company can reimburse them.
Use Latest Technology
Technology allows us to save money and advance our businesses in ways that weren’t possible even five years ago. From teleconference services and online payment services, to open-source software and remote desktop applications, there are many ways you can reduce business costs with technology.Use bar codes for stock management.with uses of bar code less human services required for stock management.
The cost of paper, ink, mailing supplies and postage may seem minimal at times, but it can add up to a large business expense. Going paperless by not printing unless absolutely necessary, transitioning to a digital invoice and bill payment system, and filing all important paperwork on your computer instead of a file cabinet can help you reduce some of the most common recurring business costs.
Start Marketing Your Business Online
If you have yet to jump on the Internet marketing bandwagon, you are missing the potential of fast-paced, high-result, low-cost marketing. You can start with a business blog, social media marketing, or other online advertising and have the potential to see a relatively quick response with very minimal business costs.
Installation of sensors
We can employ dimmer, movement sensors, or occupancy sensors to automatically switch off lighting when not in use to reduce energy use and expenses.
Swich off the Wi-Fi during night and in holidays. Most of the broadband connections have bandwidth limit after which the cable companies charges you lot of money, switching off the wi-fi will make sure you are not having unauthorized downloads. It is also a good idea to use a firewall and proxy