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Looking for simple ways to cut costs? These tips will help you make a noticeable difference to your net profit.\u00a0 Remember there are only two ways to increase your profit, increase sales, or reduce costs.<\/p>\n
Having someone to help deal with routine tasks can greatly improve productivity. However, that hired help is often too expensive for small business owners.\u00a0 A lot of small business owners want to take on staff, that\u2019s how we grow our business, right?\u00a0 However, most business owners take on staff too early, normally before they can really afford to.\u00a0 Remember, it\u2019s not just the basic salary, you have to add in employers national insurance, pensions, pay for holidays, sick days, and maternity cover.\u00a0 What may have seemed a reasonable amount to pay for additional help, can quite quickly cost way more than you can afford.<\/p>\n
Apprenticeships can be a real win-win: a student gets hands-on experience assisting you with marketing, accounting or administrative work and you get time-saving help.\u00a0 Want to find out more, try here<\/a><\/p>\n Cloudsourcing a qualified remote worker is another cost-effective way to bring on some much needed support for administrative tasks.\u00a0 I have personally used People Per Hour<\/a> and Fiver<\/a><\/p>\n Small business owners are often advised to trim down their offerings to a niche market. You can save money by applying that same thinking to how you do business.<\/p>\n For instance, subcontracting can allow a service-based business owner to keep a narrow focus on the work they do, while attracting more customers. Taking on more work and paying someone to do it at a lower rate than you charge your clients will increase capacity and your bottom line \u2013 while maintaining your focus on what you do best.<\/p>\n Forget expensive print ads and direct mail campaigns. You can save a ton of money getting the word out about your business by connecting directly with your target market:<\/p>\n Networking at trade shows and industry events is another great way to meet potential partners and customers, without breaking the bank on costly advertising fees.<\/p>\n Although not free, I have been a member for BNI<\/a> for a number of years, if you are interested in it then please let me know,\u00a0 again I know this has worked for me allowing me to not only grow my business, but also gain a number of trusted advisers.<\/p>\n Often businesses buy in bulk to save money. Unfortunately, purchasing in volume can backfire if you\u2019re struggling to maintain positive cash flow, and the cheap supplies you bought never get used.<\/p>\n A better strategy is to only buy what you need and to share costs with other small business owners. Forming strategic partnerships with businesses can lead to lucrative customers whilst collectively saving everyone some cash.<\/p>\n If you haven\u2019t yet made the leap, adopt cloud-based software to improve operational efficiency. Try free collaboration tools like Google Drive \u2013 also a great way to cut down on the cost of paper. Use virtual meeting technology to save a small fortune on travel costs when connecting with clients in different time zones. And do a free trial of accounting software to see how automating routine tasks like invoicing and payroll can improve accuracy and free up hours from your schedule. At Crunchers we are Xero Certified Edinburgh Accountants, and would be happy to give you a free demonstration on how to take your business to the next level.<\/p>\n Review your business expenses on a regular basis to track rising costs and to find more ways to reduce unnecessary spending.<\/p>\n A few final \u2013 and costly \u2013 pitfalls for busy small business owners to avoid:<\/p>\n What will you do differently to start cutting costs for your small business today?<\/p>\n Crunchers – Accountants Edinburgh<\/em><\/strong><\/p>\n \u00a9 Photo Credit GotCredit<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"2. Think Niche<\/h2>\n
3. Network more<\/h2>\n
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4. Embrace co-operation<\/h2>\n
5. Save Time with Technology<\/h2>\n
Final tips<\/h2>\n
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