Running a small business is a good idea if you can get through the first year. But, getting to that point is never easy. In fact, it is one of the hardest challenges you will face in your career. The reason for this is that your business probably won’t turn over much money in the first year. While you are finding your feet, you don’t tend to make a profit. Still, that doesn’t mean that you don’t have expenses and bills to pay. To keep afloat, you need to cut costs effectively. Here are a few tips that will help.
Get Money Back
Yes, you can get your money back if you overspend. Take your utility bills as an example. Almost eighty percent of utility bills have errors, and errors cost you money. It doesn’t stop there, either, as ninety percent of telecom bills are wrong too. In basic terms, there are overcharging the business for its bills. All you have to do is pick up the phone and ask them to explain your bills. If they can’t, you know that something is wrong and that you are due a refund. This only works if you are prepared to do the work.
Pull Unnecessary Contracts
What is an unnecessary contract? An unnecessary contract is a contract that you don’t have to pay. For example, do you have any contracted workers from an external firm? Most businesses do because outsourcing is a good way to increase productivity. However, it is also a good way to pay more money, and you don’t have a big budget. So, what you need to do is dismiss these contracts and keep it all in-house. As long as your employees are up to the job, you will save a fortune in labor.
Going paperless isn’t just about saving the environment, although that is important. Going paperless is about saving money. You might not realize it, but your business will spend a lot of money on paper. And, it is unnecessary. There is no need to print anymore, not when you have the capability to email your employees instead. Or, there are instant messaging services so that you don’t have to write notes. What about storage, you ask? Well, storage is easy when you have cloud technology. The right cloud services will give you access to everything from online access to RV mail to tons of digital storage. It is amazing how much you can save when you stop using paper.
Random Drug Tests
Your company policy probably has a zero tolerance policy on drugs. Like most firms, you don’t want drugs hindering your employee’s productivity. With that in mind, you need to check that they are clean. A drugs test is the perfect option because it gives you the flexibility to schedule one randomly. If any of your employees fail the test, you are eligible to fire them on the spot. Labor is one of your biggest expenses, and a random drugs test is a great way to trim the fat.
There are thousands of ways to cut costs, but these are four of the easiest and most effective.