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Business Frugality: 4 Creative Strategies to Lower Your Costs

Business Frugality: 4 Creative Strategies to Lower Your Costs

If you run a company, then you know that you need to save every penny that you can to turn a profit in business. There are several things you can do that will help save your company money. Here are several that you may want to consider.

Relocate Your Company to a College Town

You probably don’t realize this, but college towns are a great source of labor. Current students are often looking for part-time jobs that they can do in between classes and all of their social events. By providing part-time positions with flexible schedules, you’ll be able to attract them to your company. By providing entry-level positions to new graduates, you’ll also be able to build a workforce that is not only talented, but doesn’t need to paid as much as those who have ten or fifteen years of experience in the industry.

A business relocation is a huge decision, but moving to an area where you’ll be able to employ individuals who are more willing to take a lower pay than those already established in their careers is one way to lower your hiring costs. At this point in their lives, current and graduated students are mainly looking for experiences to tack onto their resumes.

Bundling Services

Many companies find that bundling services helps them to save money. For example, you may be able to buy all of your insurance from one company and get a multi-policy discount. Using a full-service marketing agency may help you save over outsourcing each part of your marketing to a different company or to various freelancers.

Take a look at your company’s costs and see what items can be bundled together. If you’re not aware of certain bundling options, be direct and ask the companies that provide you with your services if they have any bundling options that you’re not aware of, or if they’d be willing to create a custom option for you based on your company’s needs.

Set Up Vendor Competitions

You may have used the same company to provide you with a service since your first day in business, but that is not always the smartest plan. Send out a letter explaining your needs to several different companies, and let them make you an offer for their services. If you are happy with your current provider, then you may want to take the bottom price to them and see if they are willing to match it.

Sometimes, just asking your current vendor if that is the best that they can do will result in cost-saving measures given to you because the company knows that it is easier to keep a current customer than to find a new one. Some companies may also find it in their best interest to trade services, if they have a need for the services your company provides.

Make Prudency a Company Value

When you become financially prudent with your company’s finances, then others are more likely to follow your example. Sometimes, however, this is not enough. Write prudency into your company’s value statement so that everyone who works under you knows that it is expected. You may even want to give a bonus to employees who come up with ways to save you money. After all, the people who work closely with a certain aspect of your business often have the best ideas.

Get started today by hosting a company meeting to analyze the cost-saving options above and see if they’ll work for your business. Then, site back and watch your ROI (return on investment) grow.

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by Hannah Whittenly // Hannah Whittenly is a freelance writer and mother of two from Sacramento, CA. She enjoys kayaking and reading books by the lake.

Opinions expressed by contributors are their own.