Seven Major Ways Businesses Can Save Money

buying mobile phones

The Cost of Doing Business

Because of the tremendous advancements in working online and in the cloud today, saving money can be easily accomplished by using new technologies. You can also make use of some of the old technologies, such as buying second hand, or getting deals with telecommunication providers. In this pieces we will take a look at some of the best ways to save big.

Following the 80/20 Rule with Respect to Supplies

When you are looking at your overall costs, it’s helpful to apply what is known as the 80/20 rule. This rule advocates that around 80% of your business expenses come from about 20% of your suppliers. Therefore, look at the items and services you are utilising in this respect.

Review Your Supply Costs

Scrutinise what you are currently paying for specific items and compare those costs with like items offered by competitors. If you are paying over and above what another supplier charges, then you may want to re-negotiate your contract with the businesses that are offering their wares at a higher cost.

Join a Buying Group

You can also save money for your business by joining a buying group. Buying groups can cut business costs on such items as stationery, cleaning supplies and utilities. By becoming a member of such a group, you can focus on streamlining payroll costs and similar higher value expenses.

Lower Supply Chain Costs

Reducing costs within the supply chain itself can serve, as well, to be of financial benefit for your business. By consolidating orders, you can save a great deal on packaging, consignment stocking and the expenses involved with delivery.

Cut Down on Your Base of Suppliers

If possible, see if you can cut down on the total number of suppliers you are using. Not only will it help you negotiate more easily with your suppliers, it can lower the costs associated with order processing and invoicing too.

Take an Audit of Your Purchases

Take an audit of your purchases. Ask yourself if you really need a product or service. You may be able to buy the product secondhand or find a lower-cost substitute. An example is that you may want to buy second hand phones from Gumtree, or direct from a manufacturer, rather than getting the brand new Note 4 for everyone. Phones are a bonus for employees and also convey status, but you can save a fortune by buying used or refurbished.

Offer Employee Incentives

Businesses can save money too by encouraging their staff to come up with ways for them to save money. Provide incentives, such as an additional paid holiday, for staff members who come up with the best cost savings plans. Not only will you realise savings for your company, you will also reap the benefits that come from having a workforce that is engaged and motivated.

Cut Down on Your Office Space – Collaborate Activities in the Cloud

By working in the cloud too, you can cut down on the amount of money you are paying for office space. According to the Express, almost 14% of the UK workforce  now work from home. Less office space means paying less rent. Therefore, you can collaborate the workflow by allowing certain employees to conduct business from home. If it is not absolutely necessary for an employee to come into the office each day, then you won’t need to utilise as much office space – a major cost savings for a company.

These are just a few ways your company could save money.