5 Sure Ways to Cut Expenses to Grow Your Business
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5 Sure Ways to Cut Expenses to Grow Your Business
It is okay to cut costs in your side hustle, And there are so many reasons why someone will want to do that.
The many problems come in if you don’t know how to properly cut down your cost. The wrong move can ruin your entire business.
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Before I proceed to these key points, It’s important to know that one of the crucial things in a business, whether successful or struggling, is to track everything.
A well-tracked and documented business makes it easier for you to know where to cut expenses. In this article, I will show you five ways you can cut down costs in your business.
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Key Highlights
🎯 Always track everything about your side hustle.
🎯 Never switch quality for quantity.
🎯 Understanding how your business works is a good tool to cut down costs.
🎯 Have a clear reason to cut costs in your business.
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🎯 Cutting costs is a process that is done to reduce expenses and improve profitability.
SEE ALSO: 5 Foolproof Ways to Run your Side Hustle with Violating your Terms of Employment
SEE ALSO: 6 Ways to Test Your Side Hustle Before Going Full-Time
SEE ALSO: 12 Best Online Side Hustle With a 9-5 Job
1. Make planning a priority
We get excited when starting something new or even in our day-to-day business that we forget the importance of planning. You can get too excited and rush into things without proper planning, and it gets expensive.
When running your side hustle, my advice is to stick to all that is necessary to run your business and try to minimize any additional cost that may come up.
Make a list of all the items and services you will need. If you are going to hire people for your side hustle, make a list of the necessary skill they must possess.
After all the planning, you should have a list that accounts for all necessary expenses, items, and cash flow. You should also plan and create a flow system of your business that will run from open to close.
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2. Track everything about your business
To avoid stress, burnout, and wasting resources, track everything. If you have ever run a business before, you know how things can get chaotic if you aren’t keeping a close eye on them.
When there is chaos, expenses go up. To solve this problem, try keeping written or digital copies of your expenses, deals, negotiations, and communications.
If you want to know where to cut expenses, you need to know where your money is going.
Since we know chaos leads to increase expenses, another way to reduce the mayhem is by adopting simplicity. Simplicity in our business makes it easy to track everything. Try to make the following simple:
- communication between you can your customers is simple.
- Make payment for your services simple.
- Use tools that will simplify your workflow.
- Make the best out of free tools before paying, unless your business needs a paid one.
3. Improve on budgeting
Let’s talk budgeting. One of the best ways to cut expenses in your business is by creating a budget for everything. When you create a budget, it makes you aware of everything that goes into your business.
When creating a budget, the goal is to list the things necessary to run your business first. You also want to budget for the unknown, things that may happen without planning.
Creating a budget requires you to…
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- To the amount of money you earn.
- Know the amount of money you spend.
- And in a situation where you want to be cutting off expenses, you need to know where to cut down costs.
To become good at Budgeting, you need to account for every dollar going into your business.
The next part is deduction. When you plan to cut down expenses in your side hustle you need to know how to cut down costs from your budget.
In this situation, you draft the first budget. The second thing you want to do is deduct things your side hustle can run without. That is your second draft.
Your second draft is a draft that has helped you cut down costs.
4. Choose bulk purchasing
When you start cutting expenses, you might think buying bulk or a large quantity of goods or services means spending a lot of money.
In reality, most goods or service provider offer their product cheaper if bought in large quantities. You get up to 20 percent off for your purchase which is 20 percent going back to your wallet.
Let me give you an example.
If I run a blogging business as a side hustle, my two needs to run a blog are domain and hosting. Now check this out.
Basic WordPress hosting can go $5 per month. If I buy in bulk with Bluehost, I can host my WordPress blog site for $2.75 for 12 months. The bulk purchase comes a total of $33 instead of $50.
Not all should you save on your purchase; you should also learn to save on utility. If you run a side hustle that uses utilities like light and water, learn how to manage them.
The truth is you can’t live without light and water, but can manage them. For example, if you stay in a space with lots of natural light, there is no need for the light to be on during day time.
5. Cut staffing costs or switch to remote workers.
One way to reduce your side hustle cost is by cutting staff expenses or switching to remote workers.
When I mean cutting costs, I don’t mean cutting staff salary; I mean some of the extra benefits will have to stop.
If you plan your staff cost carefully, you will be able to find places you can cut off. Another option is to hire a remote worker.
Some of the benefits to hiring remote workers are,
- It will reduce overhead costs.
- Increase in productivity.
- The cost of workers will reduce.
- An average of 2 to 5 hours gets saved by remote workers.
If you don’t want to hire a remote worker, then the last option might be you acquiring the skill and do the job yourself.
The disadvantage is if you take too much work on yourself, you will burn out, and it will harm your side hustle.
Final Thoughts
At some point in time, every business tries to cut down costs.
No matter the reason, make sure your priorities about your business remain effective. I can stress this point enough, make sure you track everything about your business.
