Small Ticket Cost Cuts Add Up

There may be any number of costs lurking in your everyday activities and procedures that just don't get noticed simply because they aren't big ticket items. But that doesn't mean they can't add up to a significant spend nonetheless. Look around and see if these tips can help drive down costs before making any drastic decisions that may come back to haunt you later.

Fuel

Organise your errands so you can take care of several on the one trip

Arrange delivery schedules, sales calls or installations according to the shortest route between them rather than zigzagging across neighbourhoods

If delivery is a courtesy rather than an integral part of your sales process, then consider cutting it out, offering it to only your best customers, scheduling it in late morning or early afternoon when traffic is lightest, or introducing a fee for it

Utilities

Turn off equipment that's not in use - computers, photocopiers, lights, air conditioning

Switch to energy efficient light bulbs

Use high efficiency rated appliances

Install automatic light switches and put the aircon on a time switch

Make use of natural lighting where possible

Office supplies

Put a moratorium on buying all but essential supplies

Reduce printing to essential documents and use the reverse side of paper for copying draughts and internal documents

Use recycled paper

Buy from office warehouse companies or discount stores

Purchase locally – shipping costs from distant distributors can more than double costs

Office Equipment

Before buying new furniture check out second hand office supply dealers

Communications

Cut back on unnecessary phone service add-on features like music on hold

Price compare phone service providers

Consider a VoIP solution

Take away mobile phones from employees who don't rely on them to do their job

Price compare website hosting service providers

Consider next afternoon or two- or three-day service instead of express shipments

Use email instead of postage mail whenever possible

Make cost cutting a continuous improvement programme

While you may have been pushed into a cost cutting exercise by the current economic situation it's smart to make cost review a normal and regular part of running the business. Now that you have carried out this review, ensure the process of actively searching for cost cutting opportunities stays alive and keeps contributing to increasing your profitability.

Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.