Small Business SOS

How to Cut Your Costs and Not Compromise Quality

It’s getting harder and harder for small businesses to cut costs.  Prices of goods keep rising but your customers expect the same quality and value they have always received.  That’s why they keep coming back – at least for now. 

You need to pay your bills, feed your family and live your life.  You depend on your business revenue for all this.  I’m sure you have already looked into cost cutting, but maybe you should look a little harder.  There is always a hidden opportunity to reduce your business expenses. 

Let’s get creative and start thinking of ways to cut costs and save money without compromising the quality of your service or product.

1. Cut back on business expenses by not wining and dining all your customers – only the top tier ones.  And when you do wine and dine them, limit the wine – that usually takes a big chunk of the bill.  If possible, invite them over for a home-cooked meal instead.
2. Decrease your fixed costs by outsourcing administrative work.  There are a lot of freelancers and college students who are looking for part time employment.  They will work for a lot less money than a full time salaried administrative assistant. 
3. If you haven’t yet, stop buying coffee.  Let each employee provide their own cuppa joe.  Encourage them to bring their own cups, utensils and dishes as well.  You can then reduce costs by not having to buy disposable meal ware.  Explain to your employees that times are tough, that this is a temporary event, and by cutting costs on these small amenities, you are able to move that money into paying their salaries.  They’ll understand.  Besides, it’s more eco-friendly.
4. Look for ways to market your business for little or no cost.  That way you can cut business cost by reducing your marketing budget, but you’re not marketing less – you’re just marketing creatively.
5. Another way to reduce your business expenses is to cut back on paper use.  Use electronic media as much as possible.  Fill out forms online, print on both sides of the paper, use those messed-up pieces of paper from the printer as scratch paper, etc.  The possibilities are limited only by your imagination.
6. Cut back on variable costs like your electric bill by getting a free energy audit from the electric company.  They’ll let you know about available energy rebates you could take advantage of, and show you other great tips on how to cut costs further.
7. This might take a little bit of research, but the reduction in business expense might just be worth your while.  Raise your insurance deductible.  You might end up paying more per visit, but the overall cost cut and resulting savings may be less than what you would normally pay on your premium.

That should get your creative juices flowing about how to cut your business costs without compromising the quality and value of your product or service.  Let me know if you’ve tried any of the above and how the cost cutting method worked for you and your business.