Even the smallest increase in revenue or reduction in your expenses can have an impact on your company’s profitability. We would like to share 5 simple steps (some you may have already incorporated into your business and maybe some new ones) that improve your bottom line!
- SHOP AROUND FOR SERVICES AND SUPPLIES.
Save money on business supplies by contacting your vendors and negotiate pricing. This will also let them know you are spend savvy and will shop around to find the best price. Most suppliers are amenable to the idea of negotiating prices, especially in this economy, and certainly they would rather do so than lose a regular customer. As leverage, try to find another supplier that’s offering lower prices, then ask your current partner to match or beat them.
- BE CREATIVE and CUT PRODUCTION COSTS.
As a business owner, you’re always looking for ways to cut material and production costs. Try selling leftover materials such as; cardboard, paper, wood, containers and metal instead of sending it to the recycling center. Also, consider ways to use your waste to create another product.
- – Get the most your of your production space. Centralize or consolidate the space necessary for production. Lease unused space to another business or individual—it can be as small as an office or as big as a warehouse space. Analyze your current use of physical space. Overflowing storage, too many supplies, piles of paper files and inefficient placement of furniture and equipment are common space wasters.
- – Consolidate or centralize the different functions or departments of your business. Use space for dual purposes. A meeting room can double as a break room or a storage room that holds copy and fax machines for example. The opportunities will vary depending upon the nature of your business.
- – Track and measure the operational efficiency of your business, in order to adjust and optimize the use of available resources. Set performance parameters that reflect your efficiency goals and offer incentives when those goals are met.
- LOWER FINANCIAL EXPENSES.
Look at your insurance policies and financial accounts for places to save money.
- – Save money on insurance by comparing providers for the most competitive rate; then ask your current lender or insurance provider to match that rate.
- – Consolidate insurance policies or bank accounts if possible.
- – Evaluate insurance policies to make sure you’re not over-insured or duplicating coverage.
- – Don’t take on unnecessary debt. Do a thorough cost-benefit analysis and future forecasting when considering business expansion. Consider the opportunity costs and the effect of debt payments on cash flow. Excess debt affects company rating, interest rates and the ability to borrow in the future.
- CUT MARKETING COST WHERE YOU CAN.
Of course, you don’t want to eliminate paid advertising that is working; however, it can be worthwhile to take a look at some cheaper alternatives.
- – Build your customer e-mail list and implement a referral program. A recommendation from a current customer is far more likely to result in a sale than traditional marketing.
- – Network more, advertise less. Clients are more likely to hire a business with a face they recognize.
- – Cut marketing costs by doing more in-house.
- – Increase social media use and reduce traditional marketing.
- USE TIME STRATEGIES.
- – Set expectations for a reasonable amount of time to complete certain types of business activities or tasks. Offer employee incentives for meeting or exceeding those expectations.
- – Schedule a predetermined block of time for meetings. Make it clear that you expect participants to be on time, to stick closely to the agenda and to wrap up at the appointed time.
- – Virtual meetings help minimize travel expenses, save time and virtual offices can eliminate the need for physical space. While we certainly don’t want to eliminate personal contact altogether, save it for the instances when it’s most beneficial.
At LIMITLESS we are your Trusted Partner and understand how to best help our Clients reduce costs, while ensuring you stay highly effective and efficient with your services. We strive daily to help you become more financially sound, putting more money back in your wallet. The average savings we find our clients is between 17% – 36%.
We use our Powerful Process to identify cost savings, improving and negotiating contracts, finding billing errors and obtaining refunds. Our Clients realize that they derive the most benefit by concentrating their efforts on their core business. Realistically, most organizations simply do not have the time or in-house expertise to analyze all the multitude of bills, contracts, suppliers and national pricing alternatives potentially available.
Our Proven Results have saved companies tens of thousands and in some cases even millions on their telecom, utility and vendor expenses with our proven cost reduction process. This “found money” allows our Clients to reinvest the “savings” into growth initiatives or apply these “found profits” to their bottom line.
Contact LIMITLESS today for a FREE CONSULTATION to discover how to get control of your unmanaged spend and reduce expenses in your business.