Cutting Costs in Small Business
Sometimes as business owners, we need to go into “survival mode”. This is especially true in the past few years. The economy has been such a nightmare and has caused a lot of stress among small business owners. As a result, many times we have to start cutting costs in small business in order to survive a tough time. We’ve all experienced it, or at least thought about it. Don’t think of this as an act of desperation, but as a smart thing for any business to do once in a while. Here are some tips and where you can start.
Office space makes up a significant percentage of most business’s overhead. Depending on what kind of business you run and how big it is, you should think about whether or not you actually need office space. If you run a small operation, you can think about downsizing to smaller office space. Or, if you can get the job done effectively this way, you can set up an office in your home or your apartment. If you trust them, your staff may be able to work remotely. In addition to the savings you can experience in reducing your rent, you may also save money on travel and utilities as well.
It’s easy to fall into complacency, especially if your business has grown and matured a bit. Think back to when you first started your business and remember all the things you would do to get your name out there and advertise for free. What kind of guerrilla marketing can you bring back as ways to help cutting costs in small business?
Now is the time to get rid of any advertising efforts that aren’t paying off right now. When you’re cutting costs in small business and you have to get into survival mode, these are going to be relatively big expenses you can cut. If you don’t do this regularly, you need to evaluate as best you can the return that you are getting from various marketing efforts. If any of them aren’t paying off right now, get rid of them and either save the money or try dumping that freed up cashflow into some of your more successful marketing campaigns.