Most small businesses spend a vast amount of their time trying to reduce overhead. It is a simple fact of survival for many small businesses. Businesses thatt fail to limit their expenses are frequently the businesses that do not last more than a year or two in business. Here are five ways every business can go about saving money and limiting expenses.
Telecommuting is not ideal for all businesses, but you might be surprised how productive many of your employees can be working remotely. Telecommuting saves your business on wear and tear to your office space and the electronics used to work. It can also be a benefit you use to keep your best employees around longer by trusting them with this benefit.
Going paperless will not only save your business money, but it can be used as a marketing tool to show both your customers and your employees that your business is environmentally friendly. This may not be important to all employees or clients, but for some it may be the difference between them choosing your company over a competitor. Aside from the potential marketing benefit, going paperless can help your business by reducing the need buy paper and ink for printers.
Selectively price shop commercial insurance
It is important to shop around to make sure you are getting a good price for commercial insurance, but it is not a good idea to switch carriers at the drop of a hat because another carrier gives you a modest discount. This strategy can cause headaches when your business ultimately files a claim and your business will inevitably experience a claim at some point. If your business has only been with a carrier for one term, the carrier is much more likely to raise your rate for premium or deny you coverage altogether. In this case, the small savings you got when purchasing insurance may cost you much more later after an incident. Being selective when switching insurance carriers is something to keep in mind when you are looking for a small business workers compensation insurance quote.
Outsourcing can be a great way to save money in the short term in order to help the long term financial strength of your business. One great way to use outsourcing is for a special project. Take for example a complete remake of your website and online presence. A web-development company can come in and work with you to remake your website in the image you see for your business. They can likely do it much quicker because they already have the staff in place who are trained and ready to go to work for you. Most small businesses do not have a staff in place and would have to hire and train several staff members for such a project. Plus, when the project is over, it is much easier to thank another business for their work than it is to fire an employee you no longer need after the project is finished.
Periodically review all expenses
Expenses are easy to rack up in any organization. Some expenses you just have to deal with, but many expenses are something you can probably do without and still run the business as effectively. If you have departments within your business, it is smart to audit them periodically to see what you can do without. These audits may need to take place quarterly, bi-yearly, or even yearly. No matter how frequently your business determines they need to be done, it is important to make them a part of your businesses routine.