Tweet

4 Ways to reduce your costs and to increase income

Written by: Mark Gwilliam

Article Overview: The little details can make a big difference in the world of business. It is more likely that a small business will experience a surge in profits due to its implementation of a series of small cost-cutting strategies rather than the acquisition of a huge new client. Cost cutting strategies for your small business don’t have to be complicated, they just require that you pay attention to some of the more trivial aspects of your business.

4 Ways to reduce your costs and to increase income

Here are some ways for you to reduce the costs of running your business and increasing your income:

1. Buy in Bulk
Identify the items that your business needs and uses on a continuous basis. A good way to do this is to observe which of your office supplies you always seem to be running out of. Shop around amongst warehouses, wholesalers, or even mail order wholesalers to see which seller can provide you with the most attractive wholesale price for your supplies. When you buy large amounts of supplies at once, you will usually get much larger discounts.

2. Borrowing vs. Renting
If there is a specific piece of machinery or equipment that your business only needs periodically or for a short period of time, it would probably be a good idea to rent it instead of buying it. You may rent the equipment from a private entity or a rent-it-all store. Again, make sure you do some comparisons to see which provider offers the most economic prices.

3. Saving on business equipment
Does your business really need to have the latest in equipment, software, or technology gadgets? If not, why don’t you consider buying an older model? Because technology moves at such a fast pace, so many new products are flooded into the market every year. That doesn’t mean last year’s model isn’t any good. You can save a lot of money by buying slightly outdated equipment that serves its purpose more than adequately.

4. Pay your credit card bills on time
Most credit card companies will charge you a hefty late fee if you don’t pay your debts soon after the monthly bill arrives. Sometimes, these charges can be ridiculously high. Pay attention to when your bill comes and make sure to pay it soon after to avoid these unnecessary costs.

For more information on how to successfully run a small or home-based business, please see my article Proven Tips to Improve your Cash Flow.

Related Articles
  Outsourcing Accounting: Easy Accounting Outsourcing to India for Small Businesses in USA
  Home Based Business Tax Incentives
  5 Easy Ways To Improve Your Work Efficiency
  Low Income Housing Tax Credit
  How To Make More Money By Helping Local Businesses

Article Tags: business equipment, buy in bulk, cash flow, continuous basis, credit card bills, debts, economic prices, equipment software, home based business, mail order, outdated equipment, pay attention, private entity, short period, technology gadgets, technology moves, unnecessary costs, warehouses, wholesale price, wholesalers



Related Forum Posts
to incorporate or not to incorporate - If you have a lot of money and business assets tied up in your business and you've been in business a while then I would definitely look at incorporating because the advantages out way the costs and paperwork. However, if you are just starting out in business the costs and paperwork are not worth the investment to incorporate. I don't agree that it will give you a lot of tax savings. In the first few years of your business unless you making 100's of thousands of dollars when you reduce your income via your taxes the tax savings are not that much different. If you are a new business whether you are incorporated or not most business or financial institutions will ask that you put up assets before they will give you credit or loans. So I find it a myth that they can't attach personal assets. In Ontario there is a Legal Aid hot line that you can call and the lawyer you choose will give you 30 – 45 mins. Free legal advice. Check it out with a lawyer before you decide.
Re: The Jean Claude Biver (Hublot) Story – Modeling The Masters - great story of someone who stuck to their vision and the best thing i learnt from it - when everybody is talking GFC - increase the marketing spend, not reduce it ! thanks Evan
Re: From $0.30 to $300 / Day on Google AdSense Part 2 - Hi Evan, Thank you for this Adsense tutorial, it is a big help. I remember when I first Added the ad unit to my blog how I enjoyed seeing the numbers go up. It is not high at all, but i earn $0.50-$1/day. I am now going to change the layout of my blog and see if it will help to increase the daily income. Of course I need to increase the traffic too, but that's another story.
Re: Improving Cash Flow - Hi aquinm78, Those are 10 excellent tips you shared for businesses to reduce debt and increase cash flow. Thanks for the detailed post as I'm sure many of us can put these to good use for both our business and personal lives. Take Care, Alan
Re: Alternative Divorce Franchise? - [quote="RussellWebb":w8jzxdy3]“We provide an alternative way for couples to divorce—one that positions divorce as an empowering experience rather than an emotional event fraught with high costs, intense emotion, conflict, and fear for children.” FDS claims that if you choose this route it can reduce costs, time, stress, and protect children with financial and parenting experts.[/quote:w8jzxdy3] Hi Russell, Yup, there's definitely a lot of opportunities/money in life and death... and marriage and divorce. So how does this divorce franchise provide an empowering experience? What makes it different from settling disputes with lawyers instead?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Work Life Balance: Adding White Space

Selling What Sizzles vs. Delivering Real Value

TRADE SHOW FOLLOW-UP: HOW MUCH IS TOO MUCH?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.