Costs and expenses are an inevitable part of doing business. From costs of goods sold, to paying employees of vendors, to the cost of equipment, there are a lot of things to pay for! I’m assuming you are here because you read the title and are interested in how you can get some of that money back. Maybe you want to give yourself a raise in owner compensation, or you have a strategic investment that you want to make. Whatever your reason, I’m glad you are here! Let’s jump in to how you can reduce costs in your business!

Time Management

The first way to reduce cost in your small business it to look at you and your employees time management. This seems simple but allow me to go into some detail. Each day, you have certain number of productive hours. Often, once we exhaust our brains and go beyond those productive hours, we tend to let our minds wander and are much less effective and excellent at the task at hand. Use the Pomodoro technique (https://pomofocus.io/) to be sure that you and your teamwork at a pace that allows them to be efficient across the whole shift or entire day. Obviously, I understand that things come up, and your day won’t always go exactly according to plan. But a proper plan (like using the Pomodoro technique) is very helpful for managing your time effectively and reducing the cost of time wasted not being productive.

Outsourcing

Would you believe me if I said that paying someone else to do a task might be less expensive than you doing it yourself? It sounds counter intuitive, right? Here is an example. As we built out Let’s Venture, I knew that I would be able to provide content to business owners focused on finances that could change their business. What I didn’t know how to do was create a website on the backend. Instead of the time, effort and money that I would have spent on building a website on my own, we hired it out to our incredible designer, Sophie. In the end, paying Sophie got us a beautiful website, while I was able to work on create content for our launch. In the end, this saved us money by getting it right the first time!

Find new Vendors / Lower Overhead

Speaking of vendors, Sometimes, you have to take an honest look in the mirror and ask yourself if you could be getting this service somewhere else for a better price. Be careful as you don’t want to sacrifice quality when you switch. Do your research, and make an informed decision that will benefit your company both from a financial perspective and quality perspective.

In Summary

Wondering how you evaluate your costs, and understand long term implications of financial decisions? Be on the look out for our Guide launching in May. This guide will have everything from money mindset exercises to hands on financial management tools. We can’t wait to show you what we have for you! In the meantime, check out the freebie below to get started!