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Key Areas Where Your Business Can Cut Costs And Save Money

In the very beginning of your entrepreneurial journey, starting up and running a successful business certainly isn’t easy, nor is it cheap.

The startup costs alone are enough to give anyone recurring nightmares about drowning in endless rolls of receipts and credit card bills. We’re talking about things like registering a business name, paying employees’ wages, monthly store rental, stock costs – the list goes on and on.

This is one of the reasons why roughly only 20% of new businesses survive past their first year of operation. But it’s a problem that can be solved.

Businesses often harbor a number of unnecessary costs that they can do without. With a critical eye and some business savvy, it’s possible to identify areas that are either sucking up money without adding any value, or which can be replaced with a more frugal and more efficient equivalent.

These are all small things you can think about when you’re running a business and truly wish to cut costs as much as possible. Let’s take a look at some of them below.

Updating your Website

There are two different scenarios where businesses will waste money on a website. Firstly, many don’t have websites at all. This is a huge error and should be rectified as soon as possible. Although you have to pay money for a website which will add to your monthly expenses, it’s a vital and extremely beneficial cost as it will give you a web presence and draw in vastly more customers.

The second wasteful scenario occurs in companies that use outdated and obsolete websites that do nothing but scream unprofessionalism. While they’re more easily able to be found, a terrible website will actually send more customers away than it draws in.

An easy solution to both scenarios is to check out a reliable web provider that can hook you up with modern and easy-to-navigate websites. Most of them allow you to set up an online store, too, which brings us to the next point.

Reconsidering your Physical Store

In an age where your business can exist entirely online, it’s becoming less and less important to have a physical brick and mortar storefront to sell your product or services to customers. Physical stores are extremely expensive.

There’s the cost of rent to take into account, overheads such as electricity and water, not to mention the price of paying staff wages to run the place. Since it’s so easy to set up an e-store and advertise directly online (with a much larger presence), it makes much more sense to do away with the exorbitant costs of running a store and do everything online.

All the more reason to have a great website.

Using Open Source Software

This is something that many companies overlook but one that can save monumental amounts of money. The reason being that they don’t know that alternatives exist. Usually, companies will stick with programs such as Microsoft Office for managing their day-to-day office admin.

There are one-time costs for Office Professional, but this costs $400 – money that would definitely be better spent elsewhere. Monthly subscriptions are available too, but in the end, it’s more economical if you choose to opt for open source software.

While the software may take some getting used to if you’re a Microsoft veteran, it’s worth noting that in most cases it’s just as good, if not better, than it’s Microsoft counterparts. Mozilla Firefox, for example, is almost unanimously regarded the world over as a superior browser to Internet Explorer.