Generally, we are always looking for ways to reduce our cost and increase our income. In the business world, there is no difference just like in our personal life in this aspect. There are countless ways of reducing cost in our businesses, but as usual I’m going to list my top 3 for this week’s edition of Top 3 Tuesday.
1. Use social media to advertise:
Advertising is very critical to every business because it keeps the general public and/or your customers informed on new information.In the past companies would pay to place adds in the local newspapers, radios, and even television.Today we have the advantage of social media outlets.They are free, and as long as you can build your followers, you can reach countless followers on the web.The most popular social medias are Twitter, Facebook, Instagram, YouTube, and so on. The time invested in this could be worth the savings.
2. Review your operating expenses:
We know the normal expenses that are necessary to run our business (payroll, rent, equipment), but often times it is the little things that can make a bigger difference in savings.Day to day expenses such as coffee, maintenance, and supplies can be adjusted.Ask yourself, “Do I really need to drink this brand of coffee? Is there a cheaper option that will give me the same result?”It is always a good idea to compare different rates from different vendors at least once a year to make sure you are getting the best value for your money per product.
3. Review location:
This section is divided into 2 sub categories below.
a. Home Office:
If you operate your business from your house, you are eligible for certain tax write offs you normally wouldn’t qualify if you were an employee or renting an office. One advantage of this is that you don’t have to drive to the office everyday putting the wear and tear on your vehicle, and your general car maintenance like gas and repairs will be reduced.For other tax benefits, please see your accountant.
b. Office Rental:
Location, location, location.Just like in real estate, location is everything.Office space in big cities will cost multiple times more than those in the suburbs.However there are options available to reduce those cost.One option is to sub-lease an office space from another company.Sometimes this will also have the benefits of using their conference rooms.Another option is sharing office space.This is usually common with barbers and hair stylist.This way you don’t have to pay the full monthly rent on your own.