by Nigel Hilton
Running a business, or getting a start-up going from the ground up is not an easy feat. Money is tight and investors are risk-averse so being bold and daring with your business is tricky. We’re all looking for ways to keep expenditures low so things stay ticking over and we can plan the next big venture. But how do you keep costs low without cutting corners or being cheap? Here are a few tips to decrease your outgoings without getting complaints from customers.
Produce Things in a Cost-effective Way
This doesn’t mean start buying in low-quality materials or overworking your employees so they make mistakes. Keeping up with the latest technology will allow you to find out how to reduce cost in your manufacturing company with things like 3D printing. Yes, there may be an initial cost for the machines or the outsourcing, but once that’s paid for, then you’ll find you can make back a significant amount of money on time and manpower.
Go Green
Energy consumption is the second highest outgoing for manufacturing businesses, after labor. Once you have done an assessment of your production method, make production decisions based on demand rather than having a backlog of goods which may never reach customers. There are a number of ways you can become more energy efficient, which will save you money and be better for the environment. If you are time-shy, nominate a person from your team to take responsibility for energy-saving initiatives. From a mercenary perspective, being able to tell customers that you are energy efficient and are making an effort to reduce your carbon footprint is also likely to entice people through your doors.
Revisit Old Ideas
Just because an idea didn’t work for you last year is no reason to assume it shouldn’t be revisited. It might not have been the right time for that particular venture. Now, maybe it’s exactly the right time to resurrect it. Don’t be a businessman like Trump – listen to your employees and return to past thoughts and ideas. Not only might you mine up some gold, but reviewing old notes and minutes could just spark some creativity for the future.
Negotiate
If you’re established, there’s a high chance that you’ve got at least some suppliers and freight carriers that you’ve been working with since the beginning. It’s worth having a conversation with them to see if there’s a discount they can offer you for loyalty and repeat custom. If you make regular orders and pay your invoices in a timely fashion, then you’ve got a good leg to stand on for getting a discount. It’s always worth asking the question and, as long as you phrase it politely, the worst they can do is say no.
These tips should give you a few starting ideas to begin your cost-saving journey. Remember though, the customer should always be your first priority so if you find that you’re getting dissatisfied customers and the product is suffering as a result, then go back to the drawing board.