Entrepreneurs: Here’s How You Reduce Your Business Costs Right Now

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Entrepreneurs Here's How You Reduce Your Business Costs Right Now-Chispa MagazineWe know all entrepreneurs are always looking for ways to cut back on the outgoings. We’ve been there ourselves, and those accounts are often terrifying. It’s so important to keep the profit margin in the black, and keep that cash flow running smoothly. There are only two ways to give yourself a profit margin cushion. Your first option is to sell more! (Which is easier said than done). The other option is a little easier, and you’re in control of it. It involves cutting your overheads and outgoings as far as possible. That’s what we’re looking at today. We’ll help you identify those problem areas, and shave off small costs from each.

Cut your energy costs. First of all, let’s get rid of some of those pesky bills and expenses. Monthly bills always amount to large amount. Especially if you’re running an office or other business premises. That’s a lot of electricity, a lot of internet charges, and a big phone bill. Start with a strict energy-saving campaign inside the office. Turn down the thermostat a notch or two, and make sure your employees are turning off their appliances. If you own the premises, you can even make insulation changes. Use insulation adhesives to lay an energy efficient alternative, and install double glazing where possible. You’ll notice a big change with these alterations.

Outsource. Modern businesses are outsourcing more projects and tasks than ever before. Entrepreneurs are slowly realising that it’s not always cost-effective to hire a full-time employee. Instead, outsource the necessary projects to experienced professionals. Everything from accounting to web design to customer service can now be outsourced. It’s more efficient, and you’ll only pay for the time spent on the project. Compare that with the $4000 average cost of hiring and training a new employee, and I’m sure you’ll agree.

Always pay on time. As a business, it’s so easy to build up additional payments and late charges on your outgoings. You’ll be charged for paying invoices late, and you’ll default on loans if you don’t pay them back. That’s why you must always pay on time. Not only is it cost-effective, it also builds trust between you and your suppliers. If you regularly pay on time, you’re more likely to get a discount or leeway in the future. It’s good financial and business sense.

Negotiate for everything. In business, there is always a deal to be struck. There’s always a movement on price if you know how to ask for it. It all comes down to your relationship with your suppliers. What can you do for them to encourage a price reduction? Could you promise them your next big project, or buy in bulk to secure a discount? There is always room for maneuver, you just have to ask for it! Haggling and negotiating doesn’t come easily to everyone, but it’s a skill you need to master in business.

As you can see, there are lots of places to reduce your outgoings. Finding these small areas to make little reductions will make a world of difference; try it yourself.

Photo by Pictures of Money

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Mavian Arocha-Rowe

Mavian Arocha-Rowe

Editor-in-Chief at Chispa Magazine
Mavian Arocha-Rowe is known as an asset to the business and communications industry and is motivating and advocating “your authenticity should be your strategy,” for all women, regardless of their season and roles. For the past 20 years she has directed magazines, plus multiple art and marketing departments as creative director and brand manager. What supersedes all of her great career moves is her role as wife and mother living in Atlanta. Challenging herself to discover and bravely pursue the calling for her life, Arocha-Rowe helps other women discover and pursue their life’s assignment. She is a passionate, and loud-laughing speaker on the topic of purposefully redeemed, and mentors young women so they can exercise a mind that is doctrinally pure, along with a heart that beats toward sanctification. She will almost never turn down Marlow’s Tavern double-tavern cheeseburger, a cooking-demonstration from Leaning Ladder, or any opportunity to head to Miami to spend time with family.
Mavian Arocha-Rowe

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Mavian Arocha-Rowe

Mavian Arocha-Rowe is known as an asset to the business and communications industry and is motivating and advocating “your authenticity should be your strategy,” for all women, regardless of their season and roles. For the past 20 years she has directed magazines, plus multiple art and marketing departments as creative director and brand manager. What supersedes all of her great career moves is her role as wife and mother living in Atlanta. Challenging herself to discover and bravely pursue the calling for her life, Arocha-Rowe helps other women discover and pursue their life’s assignment. She is a passionate, and loud-laughing speaker on the topic of purposefully redeemed, and mentors young women so they can exercise a mind that is doctrinally pure, along with a heart that beats toward sanctification. She will almost never turn down Marlow’s Tavern double-tavern cheeseburger, a cooking-demonstration from Leaning Ladder, or any opportunity to head to Miami to spend time with family.