Five Ways To Save Your Business Money

beggers May 17, 2017 0
Five Ways To Save Your Business Money
If you were to ask successful business people why they started their companies, many may be aware that they still have a public image to uphold so may say to help their community, or to provide solutions to the problems of everyday life. The suspicious things about these answers is that the motives that they describe are what prompt a lot of other people to start charities or non-profits. The difference with business types is that they are in the game to make money, no matter what they tell themselves or anyone else. Running a business is about profit. If the business manages to make a positive impact on the world, that is a happy byproduct but nothing else. In the case of immensely successful people like Bill Gates, he now dedicates much of his time not to running Microsoft, the company which made him the richest man on earth, but to concentrating on the Bill and Melinda Gates Foundation. He is now a philanthropist rather than a business person. His motives are now just to help people because he does not need any more money. In fact, he has pledged to give most of it away.
However, all the other business people will still be trying to make some money. A great way of expanding your profit margins is by reducing costs. The smaller your overheads, the larger your profits will be. Here are five ways in which you can save money for your business:

  1. Employee benefits are expensive. While it is important to ensure the health of your staff by covering their insurance, there are ways to make it less expensive. For instance, telehealth video conferencing means that your employees can speak to medical professionals faster and from the comfort of their home or office. This will cut down on potential lost productivity in sick days and the cost of insurance itself.
  2. One of the disadvantages of being a small business is that you do not have as much negotiating power as your bigger rivals with their greater resources. The way to get around this is to approach other small business owners and suggest a buying alliance. Whether you want cheaper utility bills or want a bulk price on materials, joining together gives you leverage.
  3. If you market yourself more creatively, you can save lots of money. For instance, you could offer to teach a class on being an entrepreneur or write articles for business journals or websites. It is a good way to raise your credibility as well as getting yourself known.
  4. You need to be wary of potentially disadvantageous shifts in the national economy. While permanent employees become more experienced and develop a sense of the company culture, if you are looking for people to do minor clerical tasks, temping agencies may be able to provide you with much cheaper workers.
  5. Outsource. Creating and maintaining entire departments of your business that could just as easily be taken care of by outside contractors is a good way to tie up lots of money and resources. If you need to send something across the country, it is much cheaper to hire a delivery service rather than invest in a truck and driver yourself. The same is true for lots of aspects of business.

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