Cutting expenses if you are a small business owner is not easy – it requires creativity and trying out things you may have never considered.

From using technology to going paperless, there are ways to cut your overhead without feeling the pinch – here are some tips:

• Lower your office space costs. Depending on the commercial property situation in your area, you may be able to take advantage of depressed prices for office space to move your business to less expensive quarters or negotiate with your existing landlord for better lease terms. Operating a business from home can also save you money on insurance, business rates and utilities.
• Reduce paper use. Like reducing energy and water usage, cutting down paper waste is good for your company’s bottom line and the environment.
• Invest in technology. Explore new technologies that may help your business improve efficiency, increase productivity and reduce costs.
• Maximize your employees’ skills. Assess the current usage of employee experience and skills. Give responsibilities to the employees with the most skill and efficiency in those areas.
• Streamline your marketing. If you haven’t analysed your marketing mix recently, you may find that you can reduce your expenses significantly. Once you identify wasteful marketing efforts, brainstorm ways to replace those elements with less expensive forms of marketing.
• Strategically taking on expenses. Managing expenses means taking on other expenses, provided they’re valuable to you. For example, you might invest more money in a new marketing campaign if it promises to return new sales.
• Review your suppliers regularly. Make an annual or semi-annual review of all your key suppliers a standard practice in your company.
• Employ remote/flexible working. Renting office/business space is one of your biggest small business costs, so finding ways to reduce it will help you cut your expenses. If your business is able to be set up for remote work, you can downsize your office space by not having all your employees in at the same time.

Final thoughts…

With little imagination and experience, you can find out the way to cut costs and save money in your business. Analyse and target specific expenses that can be reduced, and identify efficiencies that make each pound go a bit further.