Just the act of flipping the ‘Open’ sign means costs are accruing. Can you hear the pennies slip away? Running a business is expensive, and controlling costs should be a constant priority – but please don’t make an immediate switch to cheap toilet paper and revoke all bonuses. You can cut costs in your business by simply paying very close attention to where the dollars go, and make smarter decisions about what’s necessary and what’s wasteful.

  1. Track and budget: Analyse your short-term, long-term and fixed costs, and devise a plan for the best way to make your money work for you, while still paying the bills.
  2. Maximise efficiency: Review processes and procedures to see if waste is affecting your bottom line. And while you’re at it, set simple polices to ensure work gets completed, orders filled, and so on; and build in ways to make employees accountable.
  3. Utilise technology: Are there areas of the business that could benefit from a more efficient solution, such as customer relationship management (CRM) software, automated job scheduling or mobile payment processing? Consider a short-term investment for long-term savings.
  4. Find hidden costs and simple savings: Review contracts annually, dig into what you’re actually using and identify if changes could be made. Also uncover the little things (like printing or air-conditioning) that can result in savings if controlled.
  5. Outsource and change pay structures: Evaluate contractors or freelancers for specific projects rather than hiring full-time, and check into commission-based pay for the appropriate circumstances and employees. These are only some staffing solutions you can consider for your company.

Remember, a sustained approach will serve you better over the long haul than the immediate benefit from a slash-fest.

If you’d like some help implementing these strategies in your business, contact the team at Business Wise on 4922 6128

Business Wise
The team at Business Wise don't just do bookkeeping and accounting - we believe that successful businesses are those that are informed, proactive and open to change, and we want to help you on your journey to success.