30 ways to cut business costs

6. A beautiful friendship
Building good relationships with suppliers can result in reductions in costs. Ask them for suggestions on how to improve the way in which you work together. Could ordering weekly instead of daily allow them to reduce their own admin costs and enable them to pass the savings on?

7. Improve cash flow
Reduce your stock levels, and encourage suppliers to hold stock.

8. Review product specification
Ensure that products being used do not exceed requirements. Can you use second-hand pallets for transportation? Recycled toner cartridges?

9. Establish a caring culture
Caring is a pre-requisite to effective cost management. If staff and executives are complacent, it’s difficult to implement savings.

10. Commit to stamping out unnecessary costs
Lead by example and demonstrate to employees that you care about saving money, even on the smallest items.

And now for the detail…

11. Competitive banking
While it’s easy to be complacent and leave all your banking in the hands of one institution, it pays to shop around. Many banks specialise in different areas of expertise and you can use that knowledge to serve your needs, and save you money. Plus, you won’t be fully dependent on one bank.

12. Cleaning
To ensure your cleaning contract, or in fact any contract, meets your needs, make sure the contractor knows what you expect. Let them know if there is a problem, but also give them feedback if things are going well.

13. Couriers
Understand how your couriers charge their clients. Some charge per consignment, others per parcel. Work out which service will be most effective for you and, if necessary, switch suppliers.

14. Expiry can be expensive
Be aware of the expiry date on contracts for services such as electricity, gas, and phone. Suppliers often revert to a much higher penalty rate once the contract expires.

15. Freight costs
Consider handling costs and packing when putting together a consignment. Does it fill one container, or is it made up of several items that can be packed on pallets so that you can minimise transport handling costs and stock damage?

16. Investigate insurance
Allow time to investigate and negotiate your insurance policy before the renewal deadline. Make a note of when policies are due; many brokers wait until so close to the renewal date to contact their clients that they leave little time for negotiation.

17. Making space
Do not allocate a specific car park to a specific staff member. Have seven percent fewer car parks than the number of staff entitled to them. On any day, you’ll find that there will be a certain number of absentees; you don’t need to pay for empty spaces.

18. Office supplies #1
Decide on a comprehensive product range and stick to it. Be wary of stationery cupboards. While they may seem an easy way to deal with this ‘chore’ item, they cede control of the ordering and stocking to the stationery company.

19. Office supplies #2
Try suppliers’ own-brand products. This can reduce costs by up to 30 percent.