In light of World Savings Day (October 31), let’s take a look at a few ways small and medium-sized businesses can enhance profitability and achieve quick and painless cost savings.
1. Become a bargain hunter. Run your small business the way that the head of a frugal household might manage the home finances.
Buy consumables such as toilet paper, coffee and stationery in bulk and keep an eye out for discounted offers when you need to stock up. Buying generic (no-name) goods rather than well-known brands can be a cost-saver. And rather than purchasing vehicles, office furniture, and other big ticket items new, look out for gently used second-hand goods that can be much cheaper. Another alternative for big purchases such as vehicles and office equipment is to look at leasing to preserve your capital.
2. Check the recurring payments coming off your bank accounts. If you have a lot of smallish transactions going through your banking account, you can miss recurring payments you’re making for services you no longer need but forgot to cancel. For example, you may still be paying one internet service provider when you moved your business to another provider six months ago.