Early in the year is a perfect time to reassess your business, including organizational structure, policies, marketing and more. Reviewing company costs can also pay huge dividends throughout the year if you can create an expense-cutting plan and stick to it. Here are a few ideas for reducing costs with your bottom line in mind:
- Review the lease. Do the terms of your lease still make sense? Landlords like to keep good tenants, so look for ways to revise lease terms to make them more favorable to your company. If you own a building but don’t use the entire space, consider subletting to another business to generate additional revenue.
- Reassess insurance policies. It doesn’t hurt to review your insurance needs on a regular basis. The policy you bought five years ago may not be competitive today. Your company may be carrying coverage you don’t need. Discuss existing arrangements with your agent. You may be eligible for trade association discounts or an umbrella policy.
- Consider buying in bulk. For some items, such as office supplies that your staff regularly uses, buy in quantity. By renegotiating supplier contracts, you may be able to generate additional discounts.
- Do a technology audit. Take a look at what your business uses and what can be made more efficient. Maybe you don’t need an inter-office phone system when all your employees have cell phones. And replacing desktop computers with laptops may help save in energy costs.
- Update the schedule. By closing the front door of your business one day a week and asking staff to work longer shifts on the other days, you can often save utility costs and other overhead expenses. Ask your employees for help. They may suggest the perfect cost-saving alternative to the standard workweek, especially if it means saving the business and their jobs.
- Rethink lighting. Utilities are often one of the largest expenses on a company’s profit and loss statement. Consider installing motion sensor lights to reduce costs. And solicit staff suggestions for additional savings.
Take cost-cutting measures now to help your company reduce wasteful spending and save big.