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When you start your own business, you are probably quite naive to the amount of money that you will be forking out to maintain and run it.
You will soon become well aware of the cost of things, as bills come in and you have to start managing your finances effectively. You’ll be happy to know that there are plenty of areas in any small business where costs can be reduced or completely cut. You just need to know where to start. Here are a few key areas where most businesses will find that they are overspending and the best ways to cut back.
Reduce Printing Costs
Printing is a relatively cheap process once you have your setup and have filled the cartridges with ink. But sheet by sheet, the costs start to mount up. This will become very noticeable if you print a vast quantity of documents on a regular basis. There are a couple of ways to cut the costs of your printing without compromising the quality of your final print. This may be investing in a printer that uses cheaper ink or buying paper in bulk for a lower price. But the best way to go about minimizing print costs is to make use of Managed Print Services. This service incorporates an analysis of your current printing infrastructure and print automation to optimize your print environment.
Pay Invoices Early
If you bring in goods from suppliers, offer to pay for the goods up front. Many will offer you a discount in return for this favor. They will appreciate the direct payment and not having to chase up invoices and payments down the line. Not only will this save you cash, but has the bonus of building strong business relations between you and your stockist.
If you have a few short-term jobs, outsource the work or bring in freelance workers. The work will be completed to a high standard but on much more casual terms. Hiring a freelancer will work out cheaper than the ongoing work and benefits that come hand in hand with hiring a full-time employee. If a freelancer stands out in particular and you wish to keep them on, you could always offer them a more permanent position later down the line.
Opt for Low APR Credit Providers
Most small business will use credit cards when paying for additional expenses, travel, and other small essentials. Negotiate the lowest APR possible with your lender. This means that you won’t have to pay as much interest and will save you money in the long run.
Communicate via Email
Email is cheaper and more environmentally friendly than corresponding by letter. You will save money on stationery like paper and envelopes, as well as the cost of stamps. Email is also instant, so will result in faster and smoother communication between you and your contacts. If you aren’t a fan of talking online, you can always opt to talk over the phone instead. This means paying for a business phone or a business landline, but chances are that you will already have one of these anyway for general inquiries.