Three Ways to Cut Costs for Your Small Business

Tuesday, May 13th, 2014

Even with the economy on the rise, it’s general good practice to keep a check on your business costs and see if there’s any room for improvement when it comes to savings. As the old adage goes, “a penny saved is a penny earned.” Here are a few ways you might be able to cut costs and save your small business some money in the long run.

Cut Costs for Your Small Business:

Renegotiate Your Lease

Do you lease your store or office space and think you’ll stick around for a while?

You should consider talking to the property owner about lowering the cost by signing a longer lease. Committing to an extended time period may seem a little daunting, but if you’re comfortable with your location, renegotiating could save you a bundle.

Be Energy Efficient

Did you know that small businesses spend more than $60 billion a year on energy across the country? That’s a hefty chunk of change!

But with some energy-saving techniques, you’ll likely be able to cut some costs for your business:

  • Lighting: Are your rooms or offices lit even when no one is in there?  Consider putting motion sensors on certain lights. If there is no activity in the room, the lights will be turned off automatically. Be sure to use energy-efficient light bulbs, which typically use about 25%-80% less energy than the traditional incandescent bulbs we’ve used for so many years.
  • Temperature: Heating and cooling your office is necessary during working hours, but what about when no one’s at the office? If you can install a programmable thermostat, changing the temperate by 10-15 degrees during the night can save you 10% on your bill. The ideal temperatures are 68 degrees in the winter and 78 degree in the summer.
  • Paper: Surprised to see paper on this list? Consider the energy consumed in the paper manufacturing process – from harvesting trees to shipping. Check outthese tips for reducing your paper use and ultimately, your paper costs.

Plan Ahead

Do you know when your vendors offer sales and discounts throughout the year?

Plan ahead so you can take advantage them. Many office suppliers offer deals on certain products at discounted rates throughout the year. If you see these sales, make note so you can buy at that time and plan to in the future.

If there’s a certain product you tend to need, consider buying in bulk to save money. Yes, you’ll spend more up front, but you’re likely to spend less per unit if you purchase more. Depending on the total cost of your purchases, you may qualify for reduced or free shipping. Being smart about restocking your inventory can go a long way, so be strategic – not sporadic – about order supplies.

Those are just a few ways you can consider to cut costs for your business. Start saving today.