5 Ways to Decrease Costs for Your Company

02/06/2019

5 Ways to Decrease Costs for Your CompanyWith a bit of thought and creativity, you can decrease costs for your business in ways that won’t disrupt your goals or productivity. In fact, careful cost-cutting could even help your company operate more efficiently and serve customers more effectively.
 

  1. Carefully track your spending.
The first step in decreasing costs for your business is making sure you know where all your money is going. Whether you’re using sophisticated budgeting software or a simple spreadsheet, it’s important to track every dollar your business spends. Even small amounts can add up over time. Writing for the Houston Chronicle’s website, attorney and accountant Carter McBride recommends categorizing the expenses you record so they will be easier to analyze.
 
  1. Cut energy usage.
You’ll always have to pay heating, cooling, and other energy costs for your company, but many options are available to help you reduce the burden of these bills. Financial writer Brian Martucci of Money Crashers lists several places to start. These include installing smart or programmable thermostats in the office, putting in double-pane windows and light-blocking curtains, and carefully sealing points where too much heat is escaping. It’s also important to make sure that you turn off unused computers, lights, and appliances during non-work hours.
 
  1. Pay less for equipment and services.
Your company probably spends a great deal of money on necessary equipment and services, but there are still plenty of ways to cut costs in this area. Alyssa Gregory, a financial writer for The Balance, suggests purchasing refurbished equipment and furniture for your office when possible instead of buying all-new items. According to Martucci, you should also review how much you’re spending on regular services like data, bookkeeping, and telecommunications. If you’re not getting your money’s worth or if other providers can do the same job for less, it might be worthwhile to renegotiate your current arrangements or switch to a new plan.

North Shore Bank can help you find the most cost-effective solution that fits your equipment needs. In today’s challenging environment, it’s important to have a relationship that helps you fund expansion. Learn more about our equipment leasing options.
 
  1. Use technology to save money.
Thoughtfully incorporating technology into your business can help you save both money and time. In an article for Mashable, financial writer Jolie O’Dell writes that instituting a paperless system is a good way to cut costs. She also suggests using free or open-source software to replace more expensive options that require hefty annual licensing fees. Cutting back on more expensive traditional marketing methods and taking advantage of social media sites and online advertising is another good way to save money using technology.

North Shore Bank’s Business Online offers you the tools you need to manage your business accounts from anywhere. Take a look at our suite of products and services to help you stay on top of your business’s finances.
 
  1. Reduce employee turnover.
If your business can’t hang on to qualified, productive employees, your bottom line will suffer. Financial writer Michael Lewis points out in an article for Money Crashers that losing experienced workers can hurt your quality and productivity. Recruiting, hiring, and training new employees isn’t cheap, either. Addressing employee turnover rates may not lead to immediate savings, but investing in better compensation, benefits, and working conditions can pay off in the long term and allow you to retain the workers that contribute so much to the success of your business.
 
Keeping costs under control is a simple way to improve the profitability of your company, and to ensure less disruption when business is slow. As you decrease your current spending, you’ll also be laying the groundwork for future stability and success.

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