As a small-business owner, your profits may keep the lights on during the day, but the expenses surely keep you up at night. Here are a couple of ways you can cut costs and increase your profit margins so you can sleep a little more soundly at night.
Reduce Your Office Costs
Depending on the real estate situation in your area, you may be able to move to a less expensive office space in your area while still being within reach of your consumers. Think about your business carefully, do you need office space? Can your service or business be home-based or mobile??
Many entrepreneurs have utilized this idea and have taken their business to the road providing in-home repair, maintenance, and education for their customers. Are you a designer, accountant, or Etsy-selling expert? Business owners like this thrive off of lowering their office space costs by selling their products or services from home.
Wheel and Deal for Your Resources
Are the resources you need in order to be successful eating up some of your profit margin? Look to see if you can exchange your goods or services for materials with a vendor in your area.
A great example of this would be a screen printer needing parts or ink for making T-shirts. One of the vendors you work with may need new team uniforms and would be open to exchanging parts for new company shirts. Depending on the costs of the actual shirts, it may be well worth it for the screen printer.
This is just one way you can reduce your fixed costs to keep that profit margin higher, letting you can sleep better at night. Want to learn more ways to make your business more efficient and hassle-free? Always remember that AFEUSA is a resource through which you can explore many different facets of business to keep learning and growing.
by: Charles Jackson,