Savvy business owners know that processes can be streamlined and money saved to shrink expenses and boost what’s in the bank. This gives you more scope for investment in growth and active enhancement of the brand. If you’re ready to join these savvy business owners, here are five ways to grow your business by shrinking expenses:
1. Cut the Long Office Contracts
One of the biggest expenses a business can incur is a hefty office contract. In addition to being expensive, office leases tend to be at least 6-12 months long, and you often get minimal benefits in return. The costs of physical offices are also set to rise as running costs increase with global inflation rates.
By switching that contract for affordable virtual offices and similarly flexible, convenient, and cost-effective alternatives, you can save a lot of money. You’ll also retain many physical office benefits, like reception services and your own physical address.
2. Switch Employees for Freelancers
Employees that are on the books full time have to be worth every minute they are being paid. If they are pulling their weight, but the work that needs to be done just doesn’t justify the wage, letting them go is an effective way to cut costs and retain resources for other forms of business growth.
While this is a tough decision, it could free you up to tap into the talents of the 15 million US digital nomads and other freelancers worldwide. You can usually get specific jobs done at a great rate or hire remotely with casually agreed hours. In turn, this cuts down on the costs and contractual commitments that come with employing full-time staff.
3. Change Your Office Supplies
A recent study on select educational institutions examined paper usage, gas emissions, energy consumption, solid waste production, and water use. The researchers found that nearly 50% of those resources could be saved. A similar story is told across businesses who could strip their supplies and utilities right back to save a lot of money and consumption for the good of their bank balance and the planet.
4. Utilize Virtual Tools
Across the board, there are free or low-cost virtual tools that you can use to increase the productivity and efficiency of your business. Why opt for expensive hourly services and hefty service contracts when so many streamlined, low-cost, virtual tools exist to make your life easier?
Whether you need an income tax calculator, a team communications app, or a call management system, there are so many free tools ready and waiting to make your business run more smoothly.
5. Ditch the Warehouse
Warehouses can be expensive, and the contracts are often so long that the costs can be a real issue for growing businesses. Instead of paying out for a warehouse for your inventory, utilize something like self-storage instead. There are 2.3 billion square feet of self-storage facilities in America, many of which have competitive pricing, great benefits, and flexible contracts.
“The habit of saving is in itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.” – T.T. Munger
The tips above can help you shrink your business expenses right back, giving you a better bank balance to facilitate growth and investment in future success. A lean business mindset is a great thing to have both now and moving forward. This is especially true in the current economic climate, which is creating challenges in all industries.