Cost Reduction Ideas for Companies

Entrepreneurs worldwide have to work with restrained budgets and any money saving idea is welcome. Below we present you the ultimate top Cost Reduction Ideas for Companies, ideas that maybe have never crossed your mind. It’s time to integrate these right away and experience their effects.

cost reduction ideas for companies

Merged Advertising

Merge your advertising (promotions, deals etc.) with your bills or whichever other materials you are sending to customers and partners. This is known as piggyback and it reduces the expenses by saving postage, paper and so on. Moreover, there are far more chances to get the recipients’ attention.

Set Up a Low Cost Online Store

If you want to sell online, you don’t have to jump straight to having your own custom eCommerce solution, which incurs some costs. You can start by using sites like Ebay and amazon, where you can list all your products. Then, when ready and successful enough, you can create your own web store.

Reduce Company Space

If your company is using physical space to operate, you might need to reduce it and keep only what is necessary. It’s about paying a smaller rent, but also about having to heat or cool less of a space. It’s been calculated that most organizations own 40% more than they actually need in terms of physical space.

Switch to More Efficient Refrigeration Solutions

Whether it’s about transport or about the space within a building, companies spend too much for cooling/refrigerating purposes. Even worse, the equipment gets worn out quickly and needs to be replaced. What can you do then? Invest in new technologies, preferably ‘green’ ones, so you can also reduce carbon emissions and therefore taxes, too.

Products like IceCOLD protect the equipment and cool the air faster. This is a solution that has already been adopted by companies in 41 countries all over the world.

Less Permanent Employees, More Temporary Ones

Don’t hire the maximum number of employees so you can handle the business surges. When there’s a minimum of activity, many of them will be idle. Consider hiring more temporary staff, to help you with the busy times only.

Choose Modern Buildings

Locate your offices in a modern building which is better equipped. It should have insulating windows and walls that keep the heat in. Older buildings may be less costly when it comes to paying the rent, but they will require much more in heating terms. Also, the materials vary greatly and determine how much heating/cooling is needed.

Form Alliances

It’s highly beneficial to form alliances with other businesses. You can purchase materials in bulk together and enjoy important discounts.

Join an Association

Want extra benefits such as discounted travel, insurance, phone services and more? Join an association for business and trade right away. Sure, you will have to pay the membership fee, but this is little compared to the savings.

Once you’ve tried these you will see that, besides reducing the operating costs, you will also draw in more customers. These are 2-in-1 solutions that no entrepreneur should ignore.

Erin Emanuel