There aren’t many business owners who wouldn’t like to save money and boost cash flow. In fact, being strapped for cash is one of the primary struggles of small businesses, and this can result from such things as rapid growth to poor management. While increasing sales is one way to step up cash flow, it’s not always that simple. Most businesses find that cutting costs is both a quicker and more reliable method of increasing cash in a business.

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Here are six ways that you can cut down costs in your business without sacrificing quality.

  1. Outsource

While your core business functions should stay in-house, you’ll find that there are certain business functions that don’t necessitate you hiring permanent staff. This is particularly the case if you have some areas of your business that might have idle periods. See if you’d be better off outsourcing such things as marketing, web design, and even some accounting functions.

One of the most popular business functions to outsource is IT services. According to a recent Deloitte survey, 31% of IT services have been outsourced, and KPMG reports that the main reason that companies are outsourcing these functions is for cost savings.

  1. Go Paperless

Are you still printing every email, contract, and billing statement? If so, you’re not only paying for ink and paper, but you’re also going to run out of room to store all of those paper files at some point. Aside from the all the trees that you’re killing, consider how much longer it takes you to find a paper file versus a quick search through your digital records. Remember, time is money!

  1. Lease a Photocopier

While you want to be more efficient and environmentally friendly, every office still needs to handle paper, make copies, and print documents each day. This isn’t likely to disappear anytime soon. What you can make disappear is the high cost of office equipment ownership by making the decision to lease a photocopier instead.

When you lease a photocopier, you’ll not only be paying less for the use of the machine, but you’ll also have some fantastic tax advantages. In the UK, you can deduct 100% of the lease fee immediately, but you should communicate with a professional about this.  Another benefit of leasing your photocopier is that you’ll have the latest technology with the most advanced features.

  1. Negotiate Better Terms

Have you negotiated the best terms with your key suppliers? If not, now is the time to set up meetings with major vendors and ask for better deals. If they aren’t willing to budge, be ready to shop around for someone who can help you meet your goals. This is a delicate balance so be sure that you aren’t jeopardizing your business when you make these contacts.

  1. Examine Your Location

Is your business or office in the most expensive part of town? Unless you are a retail establishment, where location matters, take a close look at what you are paying for your business space. Real estate is often one of the largest expenses for a business, and this could be something that you could either renegotiate with a landlord or that you might want to revisit in the form of a relocation. If you’re able to negotiate a favourable deal, ask for a long-term lease to lock in the terms.

  1. Empower Your Staff

A business is only as successful as its employees. If your goal is to cut costs, empower your staff to seek out ways to both operate more efficiently and to identify hidden areas in the business that could bring cost reductions. Give your employees incentives and rewards for reaching monthly or quarterly cost reduction goals and watch your cash flow quickly improve.

Cutting expenses will reflect directly on your company’s bottom line, and many of these cost-cutting avenues are available in nearly any economic climate. As you cut costs, keep a close eye on your sales levels and employee morale to be sure that you are striking the right balance between efficiency and growth.

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