1. Reduce Overtime
Overtime is pricey, but just a little preplanning of your work schedules goes a long way here. The feast or famine cycle that lots of businesses undergo can drive costs up with no corresponding rise in sales.
The secret is to keep a stable pace together with your work. Otherwise, you are needing to pay overtime only to keep from missing your deadlines.
2. Create a financial budget
If you don’t have one, make one. It might appear like a time-consuming project if your money is vital that you you, then your results could be more than well worth the effort. To put it simply, a budget is the most effective tool for setting and reaching your financial targets.
3. Nurture an expense saving culture
Everyone is able to and should take fiscal responsibility for his or her work. One method to do this would be to involve everybody in the budget. A financial budget isn’t just something for Management. Make all of your employees responsible for the line items which affect them. For instance, an office administrator might be accountable for keeping your workplace supplies on target together with your budget.
4. Play the “savings game”
Meet up a small team of employees and undergo your income statement line by line. Your ultimate goal is to develop 3 suggestions for saving money for every line item. It will likely be difficult for some items, but think outside the box about this. They don’t all need to be keepers. Allow it to be an open brainstorming session and inform your people that no clue is a bad idea. You are able to prioritize and implement the very best 10 ideas when you are done.
5. Negotiate and renegotiate everything
You might be surprised at the outcomes. Nearly things are negotiable. Even your banking fees are negotiable if you are doing enough business together. The trick would be to see the transaction out of your supplier’s perspective. For instance, even if you do not buy in large batches, you might be able to negotiate a volume discount on materials that you simply purchase during the period of one year. Basically, you’re guaranteeing your company in return for a price reduction.
6. Decrease your waste
Every company has waste… wasted materials, wasted time, wasted efforts, wasted money, wasted employees and so on. Make waste the enemy. Everyone inside your business must learn how to identify it and do something to eliminate it. You may never have a perfectly efficient business, but so long as you are in business, that needs to be your goal.
7. Decrease your inventory
Carrying this out may require the streamlining of a number of your business systems, but when you carry over stock simply because you might need it as some time, your savings could be more than well worth the effort.
8. Go green
You are able to reduce your utility expenses by being a “power smart” business. Switch off the lights if they are not needed; automatic switches will be this. Use energy-efficient lighting. Turn heat and a/c off on weekends and/or evenings. Avoid using the photocopier if you don’t have to. And so on. Give the local power company a phone call for more ideas.
9. Save money through partnering
There are lots of ways to partner with another company for mutual benefit. One of the ways is to share marketing costs by developing a joint campaign having a complimentary business. For instance, a real-estate firm might placed on a joint seminar having a mortgage broker, or perhaps a group of stores in the same area might organize and promote a sidewalk sale. If you are using your imagination, the options are endless.
10. Reduce your receivables
The first thing is to standardize your approach. It’s not hard to develop a highly effective collections system. What’s hard is sticking with it. Like we don’t wish to risk offending our customers. However, you can request money without having to be rude, and besides, if you have fulfilled your behalf of the bargain it’s only fair that the customers fulfill operator. So be polite, but be direct. In the end, it’s your money, and also you shouldn’t be instructed to lend it against your will to have an indefinite time period. Especially if you don’t charge interest or additional fees.