5 Effective Cost Cutting Techniques and money saving tips
Because of uncertainties of the economy, businesses sometimes find themselves operating in the brink of bankruptcy. Often though, this situation is commonly the result of poor financial handling. So how can this be avoided? The following cost cutting techniques are simple yet so efficient at preventing businesses from going broke:
1. If the business is involved in buying raw materials from different suppliers, one way to keep the costs down is to buy from a single supplier only that can supply the required material. This will not only make procurement easy, it will also simplify the process. An added benefit is that there is no need to transact with various organizations with varying policies. Likewise, the business where the supplies are bought from is more likely to give discounts because of bulk purchasing.
2. Avoid procrastination. This is specifically important when it comes to paying bills. This is one of money saving tips that many companies fail to implement because they are tied to some bureaucratic workflow that prevents them from making wise decisions. Why is paying the bills early a wise decision? Because some companies provide discounts when bills are paid early or on time. And even if they don’t, at least the bills will not be forgotten where they will earn surcharge in the future.
3. Buying supplies for the office is one area where many business cost cutting techniques are available. If the supplier of office supplies offers costumer savings card, apply for it and use it frequently. The more frequently the card is used, the more that it will give benefit to the business in terms of discounts.
4. On the other hand, buying branded officer supplies should be stopped. Instead, companies must learn to appreciate the benefits of buying generic and ordinary products. This is not only to save but also to avoid the hassle of bureaucratic policies that sometimes hinder operations. The key to making this policy work is to look for products that are not too bad even if they are not branded.
Cut down on electric consumption. This is a cost saving strategies that is good not only for the office but also at home. In the office, the number of hours spent on using office equipment can be minimized if employees will learn to turn them on only when they are about to use it and turn them off when they take their break.