You have a business and it is going great for now, but what if suddenly you found yourself in problems? Many of the business owners simply can’t save enough money for their normal operations.
Suddenly, you realize you need to cut down additional 10% or even 20% of your administrative costs in order for you business to continue working uninterrupted. And you find yourself in a big problem, you simply don’t see how it can be done.
So I’ve decided to give you 5 corporate cost saving ideas which should help you save enough money for you business without taking a credit.
Corporate cost saving ideas
Fortunately for you, there are lots of ideas where a business owner can save enough money. We are going to go through some of the best ideas I could find. For example, if you are dealing with physical products, you can save money on shipping, expand your business online, work some magic with taxes, etc.
Try to lower the cost of debt
This one is important. The thing that is killing most business owners is not the amount owned, but the interest rate that is being charged.
I would advise you to do the following. You should consolidate all of your debts in one place, and start with the debt that has the highest interest rate.
Basically, you should pay off the highest-cost debt as fast as possible, and you should focus less on lower-cost debts.
Expand your business online
If you have an online store, you can cut costs heavily on this one. Most of the online stores are a nightmare to run as you need to worry about product management, prices, taxes, shipping, etc. Not only you are most likely wasting your time, you are wasting your time as well.
Don’t forget that you need to promote your website if you want to gain any visitors. The easiest would be to spread the word by yourself. Print out the name of the website on all of your press releases, Yellow Pages, company vehicles, employee uniforms, etc. Your website won’t promote by itself, unfortunately.
Save on shipping
First of all, if you have a large mailing list, you should clean it up. If you want to do that, you can do it for free with U.S. Postal service as they will correct addresses, note incomplete addresses and add ZIP+4 numbers so you’ll be eligible for barcode discounts.
People don’t say “early bird gets the worm” without a reason. You should send your mail early in the day, and you can expect a faster and cheaper service for the price of a first-class stamp.
Again, if you have a business online, you could integrate it with some of the largest delivery services out there.
Save on tax
If you are a father and successful business owner, you can hire your own children!
If they are at least 14 years old and pay their own taxes, you can take advantage of their lower tax bracket.
Also, if your business is new, you may be paying higher taxes than some other business owners. In this case, you should go to the city hall and negotiate for a better tax rate. They might be willing to give your a better rate if you stay in the town as you will creating jobs.
Moreover, you shouldn’t overlook tax deductions! If you have a business, you already can deduct a portion of your rent or mortgage interest as a business expense. If you are not sure on what else you can save money, you should really check with your tax advisor or if you are familiar with taxation, check out the IRS.
Focus on your finances
Sometimes it’s really hard, if not impossible, to find corporate cost saving ideas. But if you are feeling like you have looked everywhere, I’m going to give your an idea or two, just don’t rush with secured or unsecured business loans.
First and foremost, you should make credit comparisons. If you plan to go with the option of unpaid balances on your credit card each month, you should go with a card that offers a low-interest rate.
Have you ever heard of buying alliance? Buying alliance is when you join your forces with another business for bulk purchasing in order to receive discounts.
Whenever you can, you should avoid cash advances as credit card companies usually charge up to 2% fee of your advance.
If you are really hungry for money and need to cut costs literally everywhere, go to the bank as early as possible. If you want to make a deposit early in the day, you will start earning interest the same day.
Cut on the low-value meetings and forums
If you run a relatively big company, you will know the pain of having multiple layers of management. If you already feel that pain, you should consider organizing a cross-department audit of all meetings to figure out which have no or low-value and simply eliminate them.
By doing so, not only you will increase productivity, but you will save money as well. Some studies have shown that should gain around 20% more in productivity.