Some great cost-control tips for small business
A recent post on BizCloud.net discusses how small businesses focus solely on sales as a way of maximizing profit/revenue, while not paying enough attention on the fact that cutting costs and expenses also contributes to a healthy bottom line:
There are certain costs that can be cut with minimum risk of negatively affecting the quality and performance. Make sure to check supplier invoices for overcharging such as double billing, incorrect charges and missing discounts. Train yourself to eliminate unnecessary costs wherever possible, and cut down overhead expenses by:
* Employing energy efficiency practices. Start with switching off the lights or other energy consumers when they are not in use.
* Controlling the use of office supplies and telephone
* Using second class postage, email or fax
* Carrying sufficient insurance coverage to adequately cover risks
* Negotiating rent or lease contracts if possible
* Identifying manual, paper-based systems that could be computerized
* Avoiding frequent small orders that waste time and may lead to losing discounts
The post also entreats small businesses to cut down overhead expenses, reduce payroll costs, reduce purchasing costs, make production more efficient, and reduce communications costs.