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Boost Your Bottom Line – 5 Smart Ways for Small Business to Reduce Costs & Increase Profits

The business world is changing, and that isn’t always a good thing. While we now have the technology to help us be more productive and smarter with our time and business practices, we are also struggling with high costs and an ever-shrinking profit margin. You might think that you’re destined to battle the bills forever, but that might not be the case. Read on to find out how your business could be reducing expenditure while increasing profits:

Look at Contract Business Rates

There are going to be businesses and individuals that you’ll need to call upon more often than not, and someone in small business IT support is one of them. How often do you find yourself with technology that doesn’t work as it should? Probably more likely than you’d want to admit. One-off call-outs can be expensive, as can any service that’s not aligned with an ongoing relationship.

You can most certainly reduce costs in your business by talking to local companies you often use to see if there’s a more affordable way to be closely aligned with them. They will surely be open to the idea of a mutually beneficial connection.

Look at Location

Having a professional business image means a lot, but at what cost?> In certain parts of the country, office lease costs are soaring, and businesses are being pushed out of the market by tight profit margins and even tighter budgets.

If you need to increase your profits and cut costs, then take a look at your premises. For example, small businesses with only a few staff may see the value in a serviced office and a single monthly bill, as opposed to several bills that don’t seem to stop.

Price Increases

When was the last time you adjusted your product or service pricing? Inflation affects how much it costs for you to live, so it should also affect the price of your goods and services. If you have not altered your pricing in some time, then it might be worth evaluating. Remember, a balance between value and affordability is paramount.

Business profits

Outsource Tasks

The beauty of the digital world is that our employee pool is far more extensive than ever before. While we can attract talented workers in the country, we can also look outside it for someone who can handle online tasks from anywhere in the world.

Outsourcing jobs to someone who doesn’t work in your office, or necessarily your country, means you save space, resources, and money. What’s more, you’re getting rid of those finicky tasks like data entry and freeing up your time for more profitable jobs.

Haggle

When you go to the grocery store, the set price is the set price. Most people will spend around $286 to $500 on each monthly shop, and you don’t ask if they can do it for a better price. However, in the business world, the set price is often merely a guideline.

Talk to your suppliers and see what they can do for you. If you increased your quantity, would they drop the unit rate? Could they be more reasonable with their payment terms? What is the likelihood of receiving a better profit margin? You don’t know until you ask.

To be successful in business involves forever striving for profit. If you’re in the red more than you’re in the black, then it’s time to make some changes. Look at the benefits of support service costs, consider price increases, and even think smarter about your business location. Reducing costs and increasing profit is hard work, but it’s certainly not impossible.

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Lynne Huysamen

Mommy to a pigeon pair, blogger and online marketer. Lover of chocolate, good books and buckets of coffee.

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