Unfortunately, there’s no set model for the perfect entrepreneur. There are so many factors which make a businessperson successful, that it’s hard to wrap your head around it all! There are a lot of entrepreneurs who have some incredible ideas, but are terrible at managing finances. If you’re not making smart moves with your money, the very existence of your business is in danger. Here are some good ways to cut down your business costs.
First of all, make the survival of your business your highest priority. Some business owners are more concerned with innovations than they are with keeping the business afloat. You need to avoid this kind of attitude. If you find you’re scrapping things which are working for you today to pursue some vague but interesting idea, then turn that around. Make sure you’re keeping posted about what’s delivering results for your business and what isn’t. Don’t cut costs for something which is clearly bringing in revenue, and don’t invest in something volatile and untested. Obviously you’ll need to make changes in order to grow. However, it’s often better to maintain stability than to stretch your resources. Strategy + Business has a very handy feature on business survival.
My next tip is to assess your in-office costs. In almost every office in the world, there’s a place where money is being tipped down the drain. You might be paying too much for your dedicated server, or losing out by not buying stationary in bulk. Water, gas and electricity tariffs are also a big culprit. Wasted investment is pretty easy to identify. However, when it’s spent on physical office supplies, it can be a little harder to pick out. Set some time aside to do a full assessment of all the money you’re spending on your office. If you’re finding it hard to reach solutions, you may want to hire outside help. Managed Print Services London, for example, is a company which exists solely to optimise and manage printing.
Finally, figure out ways to make unmeasurable costs measurable. John Wanamaker, the father of marketing, once said “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”. This illustrates my point pretty nicely. If you’re spending significant amounts of money on anything, and you don’t know how much it’s bringing home, then find a way to measure this. What you find might be a nasty shock! Make sure you’re keeping tabs on all your marketing efforts and paid technology. Find out what revenue is attributed to them, and monitor it closely. When you’ve got hard statistics at your fingertips, identifying and eliminating waste becomes easy. You’ll also find it easier to hone and refine the things which are generating profit.
Cut down the costs at your business, and almost everything will improve. You’ll be able to grow faster and purchase more useful materials for your business. Even if you just want to know you’re not wasting resources, then shaving down your business costs is something you should plan to do.