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How to reduce your costs in 2017

The start of 2017 will be very tough for small businesses as customers will have less money to spend which means that you will not be as busy leading to your sales being restricted. This means that money will be tight for your business and you will not be able to afford to waste money. Here are a few cost cutting tips which will help you survive the start of 2017.

Technology

As a small business owner, you may think that using technology will increase your costs. However, you are wrong. Using technology will enable you to run your business in a cost-efficient manner. The use of teleconference services will reduce the phone bills of your business. Online payment services will reduce the need of a card payment in your business which will prevent you from having to invest money into a card machine. The development of remote desktop applications will remove the need of expensive softwares and equipment. Investing into technology will significantly reduce your costs in the long term.

No need for a landline

If you are using a landline in your small business, you will be increasing your costs as you will be significantly charged for the usage of your telephone. As a small business owner, it is important to understand that a landline will be irrelevant for your business in the modern day. This is because you will be able to use mobile phones to connect with your business partners and clients. Using a mobile phone will substantially lower the costs of your business.

Go paperless

The cost of paper, ink and postage may seem low at times. However, the continuous usage of the supplies can incur a substantial business cost. It is recommended that you reduce the amount of paper you use by using a digital invoice and bill payment system. This will prevent you from having to print a substantial number of receipts which will limit your costs. Instead of printing all of your files and storing them in a file cabinet, you should store them on your computer. This is more secure as you will be able to back up your files. This shows that using less paper can significantly reduce your business’s costs.

Online Marketing

As a small business owner, you will invest a substantial amount of money into your marketing campaigns. However, due to the size of your business, not all of your advertising campaigns will be successful. This means that you will get a minimal return on your marketing efforts which will lead to your costs rising. Over the years, social media is becoming increasingly popular. You will be able to use social media to reduce your costs by marketing your business on social media platforms. This will enable you to reach a wider audience while significantly lowering your costs. You will be able to engage with your customers by posting offers, blogs and articles. Online marketing will provide you with quicker replies and interactions than physical marketing as customers will use social media on a regular basis. Remember, there you will not be charged when making a social media account.

Create a business budget

Everyone gets tempted to spend more when they are out shopping and this is exactly the same for business owners. However, as a small business owner, your income will be severely limited during January so it is important to only spend what you can afford. As a business owner, it will be vital for you to implement a budget for your business as this will enable you to limit your spending. This shows that a business budget is an effective tool for reducing the costs of your business. Without a business budget, you may spend more money than your business actually has which could cause your business to become in debt. One mistake that many small business owners make is by charging business expenses to their credit card. This will reduce your costs in the short term but can dramatically increase your costs in the long term. This is because interest rates will mean that you will have to pay a substantial amount of money to the credit card company.

Relocate

Do you use all of the space in your establishment? As a small business owner, one of your biggest costs will be the rental or purchase of your establishment. If you do not use all of the space in your establishment, then it may be time to downsize and move to a smaller establishment. This will significantly reduce your costs as you will not be paying for space that you are not using. However, when you are relocating, it is important to ensure that you choose a location which is suitable for your business and your target audience. This is because if your customers cannot reach you, you will severely limit the sales of your business. Do you have an online store? During the recent years, online shopping is becoming increasingly popular. This has led to customers choosing to shop online instead of visiting a physical store. As a small business owner, you should consider the benefits of turning your store into an online store. This is because you will not have the overheads of a physical store and will not require as many employees which will significantly reduce your costs. Remember, an online store will enable you to reach a wider audience which will enable you to increase your sales.

Are you saving your pennies in 2017?

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