Every small business owner carries an enormous weight of responsibility for securing their business’ longevity. When there is an issue of financial stability, the course of action taken will affect not only the livelihood of the owner but also their employees and clientele. If you are currently facing this kind of situation as a business owner, here are five easy-to-implement strategies you can use to protect your bottom line and your quality of service.
1. Outsource Your IT
Keeping certain operations in-house allows you greater control and independence over the quality of work that is produced – but it comes at a steep cost. That’s why outsourcing, when done correctly, can be such a blessing for businesses. An example that works well with many industries is outsourcing small business IT support with a managed services solution.
Not only is this approach cost-effective, but it can also provide you with a much better standard of service. You’ll have access to a greater range of support services and 24/7 monitoring; a feature that wouldn’t be possible if you hired someone to work during your operating hours.
2. Limit Your Operating Hours
Reducing your hours of operation is one of the simplest ways to save in all areas of your business. This can be done by shortening your daily opening hours, cutting weekend hours, or keeping your business closed an extra day per week in order to make a drastic difference in your total operating costs and labor expenses.
This technique can help reduce overhead costs like your utilities, phone bills, travel, and more. However, it’s not for everyone. Businesses that provide emergency or on-demand services need to be as available as possible, but if that’s not your case, this may well be a perfect solution.
3. Temporarily Relocate Your Office
If a city location is not essential to your business activity, it’s a money drainer. The rents are higher, commuting and travel costs need to be accounted for, and you will end up paying a premium on utilities and any services you use.
If you’re serious about cutting costs and maintaining productivity, you may want to consider working from serviced offices in your local area. The contracts are flexible, the fees are lower, and the spaces come already furnished. From high-speed internet to an office kitchen, everything is at the ready so you can seamlessly move in for as long as you need.
4. Renegotiate Your Utility Services
Reduce costs without getting rid of anything by negotiating your spending on utilities. Gather all your bills from any suppliers or service providers you use for your business and carefully work out your current monthly spending (if you have a bookkeeper, you may want to do this together). Next, take a look at alternative providers or cost-comparison sites to see if you can get a cheaper deal for the same service. Present this information to your current billers and you’ll find, most of the time, they’ll be happy to give you a discount that will beat their competitor!
5. Full-Time Staff To Part-Time
When the global financial crisis hit back in 2008, a measure that helped a lot of businesses cut costs without laying off staff, was moving full-time staff to part-time. This method comes with a bit of risk to your productivity levels, but it helps with keeping your employee talents within your business and your teams together for morale. This will make transitioning back to normal much more seamless when the time comes. Having to make compromises is something every small business owner faces, but with a bit of patience, they will be worthwhile.
