Association Benefits
Small Business Resources
Email Newsletter


Small Business Growth
& Management Guide Introduction




Top Places To Cut Costs


For many small businesses, the key to expansion lies in cutting costs to free up more capital and become more competitive in the local market. Yet, you probably feel as though you’re operating as tightly as possible. There are perhaps a few areas you may not have considered in your money-saving measures.

 

  • Employee Health Insurance. Cutting costs in employee health care plans has become a sore spot amongst employees and a last resort for employers. However, you know that this accounts for some of your highest expenses and something’s got to give, right? It doesn’t hurt to shop around and see if another provider might offer your group a better deal. You can start comparing quotes at EHealthInsurance.com or the Small Business Health Insurance Network. You can also encourage your employees to adopt a wellness plan to reduce sick days, medical expenses and lower your premium. You may also consider switching to a higher-deductible plan and offering Health Savings Accounts to employees, where they can set aside pretax dollars to cover co-pays, deductibles and any out-of-pocket medical expenses.

 

  • Interns. Interns get a bad rap as being “slave labor” for businesses, but if your company is serious about hiring the best and brightest young talent, then an internship program is a great way to onboard new recruits gradually and affordably. You will have a revolving door of interns who always want to be involved with your company if you offer them thoughtful perks and resume-building experiences.

  • Outsource Menial Tasks.Websites like Fiverr, Elance and Odesk have become a Godsend for small businesses who need web design, content writing, press release distribution, social media marketing and other odds-and-ends. Often, it’s much cheaper to find a trusted freelance professional than to delegate to one of your hourly or salaried employees whose time may be better spent elsewhere.

 

  • Go Green. These days, energy costs are sky-high, so consider what your company can do to reduce its carbon footprint and drop down expenses in this realm. Are you using eco-friendly light bulbs? Can you invest in solar, wind or geothermal energy systems that will free up lots of cash in the coming years and make you eligible for a federal government tax credit?

  • Ditch Phone & Travel Expenses. Sure, it’s more fun to spend a weekend in Vegas, but when travel expenses are more than a monthly or annual thing, you can save loads of money with video-conferencing. Also, instead of paying for an expensive in-house phone system with all its maintenance fees, long-distance fees and add-ons, consider making the jump to a VOIP system. Entrepreneurs say this move will pay for itself within 9 months.

 

  • Search Auctions For Office Equipment.The expansion of your business will entail the purchase of more computers, filing cabinets, chairs, desks and other equipment, which can be quite expensive. Try searching high-quality business liquidation auctions to get items at 40-60 percent off retail.

  • Explore Time Management Practices.What is taking your company so long to get things done? Are there ways to maximize efficiency and increase productivity? Wasting time can really do a number on your bottom line, so it behooves you to assemble the smartest people in your organization to brainstorm what can be done.

 

  • Go Paperless. According to Xerox, 40 percent of office paper is discarded within 24 hours. Instead, consider switching to electronic file storage in Google Docs, Microsoft Office Live Workspace, Amazon Cloud Drive, or DropBox.

 

Previous Article | Next Article | All Articles | Grow a Business

 

Related Articles:
Money Crashers: 12 Cost-Cutting Ideas For Your Small Business To Saveā€¦
The Toilet Paper Entrepreneur: 32 Powerful Ways To Cut Costs In Business


Small Business United Insurance Policies are Managed by ETMG, LLC, License #1544170.
Copyright 2012. Small Business United. All Rights Reserved.