Most business owners eventually face the reality that in order for their business to grow they need to cut costs without cutting corners. In this article you’re going to discover how ultra-successful business owners cut costs while still maximizing their growth potential.
Make Overtime a Crime
Overtime can quickly deplete your budget and provide little return on investment. Sometimes overtime cannot be avoided, however you should know when you need more manpower and plan ahead for it.
Make sure that your staff knows that they need managers approval for every hour of overtime this way you avoid rogue employees abusing overtime to their advantage…not to yours. Simply managing your overtime expenses can cut labor costs up to 20%.
Move to the Cloud
Cloud computing may sound like an industry buzzword but your business cannot afford to ignore the benefits of having paperless or virtual systems in place.
Moving software and digital files from your business computers into a virtual environment accessible from anywhere through the internet is not only smart but will save you thousands of dollars in paper expenses and storage fees. To put the cloud’s efficiency savings into perspective; startups today can reduce their IT set up by a factor of 10 to 1.
Enforce a no-splurge business travel policy
Let’s face it we’ve all had ordered that extra drink, or upgraded our room to business class because hey why not my work is paying for it. These little employee luxuries can turn into a massive monetary hole for business owners.
Make your staff accountable for their travel budgets, require employees to seek discounts or less expensive alternatives and enforce it. Also look into rewards programs that your credit card offers in order to minimize how much you pay for travel.
Lower Your Tax Liabilities
Nobody likes to pay taxes, however there are ways that you can lower your taxes and increase your margins. Leasing equipment versus buying them will allow you to deduct these items from your taxes every year. You can also look into leasing employees which will not only lower your benefits costs per employee, but will also give you a substantial tax ride-off at the end of the year.