-
Step 1
Keep your technologies up to date with good online communication software. Transportation cost is big for many small businesses because you will have to pay your employees’ cash per mile driven for business every time they use their own cars for meeting with clients. Buying a company car is also expensive due to initial costs, gas and maintenance. Upgrade your computer system with reliable e-mail server, web communication devices to keep in touch with clients in virtual space whenever possible.
-
Step 2
It is not smart to hire permanent employees for every spot in your company. Temporary and part time workers are so much cheaper. In this economy, any spike in sales or work should be treated with caution. Personnel costs are huge in many businesses considering the perks and benefits associated with each full time employee.
-
Step 3
Many company print lots of documents so that they can keep records on hand. Why not go paperless and store e-files on the computer and back it up on CDs. While paper is not very expensive, printer ink can cost you lots of money. And they don’t even last very long. If you go paperless on most documents, you can easily save several hundred dollars a month or more if you print more.
-
Step 4
Negotiation of price is very important in this economy. Vendors are more willing to give discounts to long term customers because many of them are losing business. Send your best negotiator or negotiate the deals yourself.
-
Step 5
Effective communication with the employees is important because they are the ones dealing with everyday expenses. They have very good ideas about how to cut costs in certain areas of the company / operation. Use a meeting to accomplish this because you can get all the ideas at once with all employees.
