There’s a huge difference between making 6 figures monthly and taking home 6 figures monthly. HUGE! This is why I always keep this in mind whenever I’m working on my business. I’ve made that possible not just by increasing my income, but also by cutting back on my costs.
Are you interested in exploring ways that you can cut costs in your business model? These are some of the best options that you should definitely keep in mind.
How To Reduce Expenses In Business
Take Advantage Of The Gig Economy
You will reach a point in your business wherein you have to bring in team members to help you operate the business. This is a good thing because it only means your business is growing. But, it also means your expenses will increase too.
If you are going through that shift and you don’t have the budget for a permanent workforce, look into working with independent contractors instead. There are various platforms online where you can find freelancers offering all sorts of services, such as Upwork and Fiver. You can also work with virtual assistant agencies that provide tailor-made support AND project management so you don’t have to worry about managing your team yourself.
If you do this, you won’t have to worry about any additional costs such as needing to provide incentives for employees to work for your business. The gig economy is great for startups because it will keep your business far more flexible.
Make Use Of Technology
While scaling your business might automatically make you think, “Hire team members!” you might want to explore technology first. I love working with people, but sometimes, technology can do the job faster and more efficiently.
So for tasks that are repetitive and can be automated, I invest on tools that can do what needs to be done without me having to think about it.
Price Check + Audit The Services You’re Using
You will need to arrange a wide variety of services in your business. One of the easiest and most effective ways to save money in your business model is to ensure that you are price checking all these solutions to get the best savings.
You can do this by speaking to numerous suppliers and sellers. They should always be able to quote you a price before you commit to signing up for their solution. If they can’t you should definitely be wary.
You will also want to create a checklist of all the services you’re already using and see if there’s anything there that you can discontinue because the service/product is already offered by another provider you’re using.
Have you looked at your energy costs? Think about how you can save on energy by making small changes for a greener and more cost-effective operations.
If you have the budget for it, switch to renewable power by having solar panels installed (which is super good for us who are based here in the Philippines!).
This is now far more affordable than it used to be and should fit even a modern business budget. It will also pay for itself in just a couple of years.
Use International Suppliers
Who ever said you have to only use local suppliers? I like ‘shopping around’ for suppliers and international service providers for my business needs.
International suppliers will often be working under different tax and labor laws. This means that they can provide the same solution at a lower price and still deliver the quality that you need.
Finding international suppliers is also now easier than ever thanks to the online world. You just need to make sure that you are set up for this type of transaction by creating duplicatable and scalable systems within your business. For instance, you might need to ensure that you can send money to Pakistan without being hit by a nasty exchange rate or red tape if this is where the best supplier is.
Do you have other suggestions on how to cut back on business expenses? Share it in the comments section below!