Owning a small business offers many advantages such as flexibility, close customer relations and the ability to adapt easier. At the same time, small businesses also face many challenges and are often overwhelmed by operating costs. A lack of capital is a large contributing factor to the failure of a small business when things don’t go according to plan.
The good news is that there are ways to prepare for difficult times and cut down on operational costs. Small businesses need to develop a sustainable business model in order for their operations to run efficiently, and streamlining expenses should be a top priority.
Here are a number of ways in which your small business can reduce running costs:
- Outsource certain functions
As a small business owner, one can take advantage of consultants or freelancers at a much lower cost than hiring someone full-time. Certain operations are often dealt with better when outsourcing the work. As a result, one can focus more directly on the business’ key priorities. Many small businesses benefit financially by outsourcing the likes of content marketing, social media, bookkeeping and conversion optimisation tasks.
- Reduce overall office costs
It should be the goal of every business to be efficient with the space they operate in. Every area of space should be utilised for a specific purpose. If there is space wasted, it may mean the current location needs to be reassessed and the move made to either a larger or smaller space. One option is to try negotiating better lease terms, or perhaps move into a home office space or even go mobile.
- Utilise a self storage unit
This is one of the most effective strategies for reducing your small business’ running costs. When it comes to reducing office costs, self storage is an incredibly cost-effective solution. During a time of growth, many small businesses use the flexibility and convenience of a self storage unit to store excess stock or archives without committing to a higher rental. When a business is still new, or going through a financially demanding season, using self storage as a ‘head of operations’ has proven to be very effective. Self storage facilities, such as those offered by Storage King, offer safe and convenient units with a variety of shapes and sizes to best suit your business needs.
- Ask for discounts
It is always worth the effort of trying to negotiate certain costs with your suppliers. Due to loyalty and the need to build ongoing relationships, suppliers are usually willing to give discounts below retail price.
- Barter goods and services
Consider bartering goods and services with other small businesses. One small business may have a set of skills that another doesn’t have and can’t afford, and vice versa. By offering trade exchanges, small businesses can help each other without impacting their cash flow.
We hope that the above offers a good starting point if you are looking to reduce costs for your small business.