Established businesses: Here are some smart ways to cut costs

Business might be going well, perhaps you’ve been turning a healthy profit for quite some time and things are on the up. However, it’s not a time to get complacent, when it comes to business you need to constantly be thinking of ways to expand, improve and keep ahead of your competitors. As an established business you won’t have the money worries you once did, but that’s not to say you shouldn’t still be on the lookout for ways to reduce costs. Every penny you spend takes away from your profits after all. Here are some ways established businesses could save themselves money.

Stop Outsourcing

When it comes to outsourcing, sometimes it can save you money and sometimes it can cost you. On one hand, you don’t have to hire and employ more staff yourself, or provide them with the space or equipment they need to work. However, you could potentially save yourself money by doing everything yourself as you’re not paying a company’s fees (which will include their services plus extra to cover their own costs). Take manufacturing for example, it can be very costly setting up your own plant, hiring experienced workers and everything else. However, once it’s up and running it will almost certainly be cheaper than paying another company. If you have the cash up front to start running areas of your business in house instead of outsourcing then overall it will work out cheaper and gives you more control of your business too.

Buy Your Premises

If you’re paying rent every month, this is essentially ‘dead money.’ However, if you have money to pay a deposit and secure a commercial mortgage, you won’t pay much extra (in some cases it will be much cheaper) and every payment goes towards you owning the building. This can put you in a much better financial position and give you more security, if you ever need quick cash for example you can sell up or take out a loan against the building. Do your research on the size and location that will work best for your business, a company like Allcott Commercial surveyors can check the place over and make sure everything is ok structurally as well as conduct searches of the local area the building sits on. Just like it’s always worth buying your home rather than renting, the same applies to commercial property too. When you’re established you know you can afford the repayments to it’s a good time to go for it.

Upgrade Your Equipment

If you’re using equipment that’s not the best you can get then you might be affecting productivity. Better computers, newer software, even new desks and chairs for workers can all boost workflow meaning better profits for you. Again while these will mean costs up front, in the long run you’ll get these back plus more. You want to ensure you’re allowing your employees to do the best work they can, so updating your equipment is a smart investment.

*This is a contributed post

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