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  • 4 Effective Ways to Cut Business Expenses for Entrepreneurs

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    Whether your business is going well or in troubled waters, you should always be considering ways to cut unnecessary expenses. This doesn’t always have to involve compromising the quality of your product or service. Here are five ways you can think about cutting business expenses.

     

    Outsource to contractors

     

    It may seem like doing things in-house will be cheaper for your business, but this is very often not the case. Trying to do non-core activities yourself might involve buying equipment or resources that you can not access with economies of scale, or even know how to make use of.

     

    You might end up having to give up and outsource anyway, resulting in wasted time and money. This is why you should always consider outsourcing non-core activities to contractors first. They will likely have the expertise, resources and experience to complete these tasks more quickly and cost efficiently than you could.

     

    Of course, you will have to pay a service fee; so carefully analyse whether this fee will end up being more affordable than the costs of doing it yourself. It’s always worth considering though.

     

    Further explore digital

     

    There are always new digital innovations which can change the way you run your business for the better. Digital tools can be much more cost efficient and effective than their physical alternatives. For example, using cloud storage for your data and files is probably a lot cheaper and better for business than having storage cabinets and paper. Using internet messaging and the likes of Skype is cheaper than using a landline phone.

     

    Don’t buy equipment first hand

     

    While some equipment will need to be brand new, a lot of the technology you buy for your business can be sourced second hand or refurbished. This will save you a lot of money!

     

    You can buy refurbished iPhone 7s for your employees at much cheaper rates than the exorbitant amount charged brand new. Of course, sometimes this will require you to have them unlocked - but this can be easily achieved, if you follow the guides on Why the Lucky Stiff.

     

    Heaps of other technology can be sourced refurbished or secondhand: computers, kitchen equipment and even vehicles!

     

    Consider closing the office

     

    A lot of businesses spend way too much money on rent and overheads, when they don’t actually need an office. Is your office only there for you to sit and work at? In that case, maybe you can consider setting up a virtual office and working remotely.

     

    Unless you need your office to host clients, you can train your staff in working via online tools such as Slack and Skype. With constant communication, you can operate as if you are all within an office without having to pay for it. This won’t work for everybody, but could revolutionise your business.

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