6 Ways to Cut the Fat in Your Company

When you run a business, you always need to have one eye on your budget because if you run out of money, then you are going to find it pretty hard to keep going as a business without taking out loans or getting yourself into a worse position, at least. This will make it much harder for you to start turning a profit and running a business that actually pays dividends.

The good news is, no matter how tight your budget is, or how important you think certain aspects of your company are, it is always possible to trim the fat and make your company more efficient, as well as more likely to actually make decent profit sooner, rather than later.

Sound good? Let’s take a look at 6 of the best ways to cut the fat in your company right now:

1. Look at Your Insurance Policy

Okay, so this might seem like an odd suggestion to start with, but the thing is, every business has (or should have) one or more insurance policies that cover them for things like public liability, and most of us simply renew our policies each year without looking at what they actually offer and if they actually represent good value, and since business insurance can run into the thousands, this offers up the potential for great savings.

Get a copy of your current insurance policy, and read it carefully. See if it covers you for everything you need, and then look at whether it covers you for things you don’t need. If that’s the case, call your provider and negotiate a better deal, removing any unnecessary cover.

Then, get quotes on the sme kind of cover from other insurance providers because you may just find there are companies out there who can give you the same level of coverage for much less.

2. Automate with NetSuite

These days, it is so easy to use technology to automate various functions of your business. NetSuite is probably one of the best solutions in this area because it enables you to automate various processes using one bit of tech, and so it will help you to trim the fat in your business by not only alloowing you to automate things like data security, purchase history, and data compliance, but it will do so without you having to buy tons of different apps ans software packages in the process. Switch to NetSuite, and you will not regret it.

3. Negotiate Lower Rent

You might well be thinking that no landlord is going to offer to lower your rent, and you’re right in that they will not simply approach you and offer to lower your rent out of nowhere, but you know what? You can go to them and plead your case. 

Obviously, this is only likely to work if you first research the rental market in the area where you have your business premises, and only if you find that your rent is not the most competitive, but if these two things are true, you can present your evidence to your landlord, and ask for a reduction. Many commercial landlords do not want the hassle of trying to find new clients to occupy their spaces, so you might just find that they will be willing to play ball, and if it works out, you could potentially save thousands of dollars each year, so it’s definitely worth your while to try.

4. Review Employee Responsibilities

A potentially very easy way to save money and cut inefficiencies in your company is to cut your payroll costs, right? It’s one of the most significant costs for any business, and the good news is, it is one you can usually cut if you are willing to put the effort in.

How can you do that? You can start by looking at what it is each of your employees does and if you are getting your value for money from them, If they are not doing enough work that you can justify having them there, then it might be best to let them go, or you could suspend hiring new people until you have seen if there are any employees currently on the payroll who could take on some of the additional task you are thnkig of hiring people for.

You can also rejog your workforce so that you are ensuring the people most qualified for any given task are actually being assigned those tasks. This will increase efficiency immeasurably. 

5. Do You Need Those Office Supplies?

It’s 2025, so if you are still spending an absolute fortune on office supplies, chances are you are spending way more than you need to, and by making simple changes, such as switching to paperless office, you could rein those costs right back in and stop spending nearly as much on paper, ink and pens. It’s a simple thing, but it really does add up, and actually, it will make you more efficient in other ways because it’s much easier to find a digital file when you need it, than it is a paper one, right?

6. Get the Experts Involved

If you are really struggling to make savings in your business, then it could be a good idea to bring in the experts who know exactly how to make savings, and by that, I mean accountants. A good accountant, or team of accountants, will rake through your finances with a fine-tooth comb and find all of those things you are wasting money on, and they will do so much more quickly than you are able to so they are worth every single penny you spend on them. Give it some thought, and if you think they could help you, don’t hesitate to bring them in.

The Bottom Line

Efficiencies are there to be found, and fat is there to be trimmed, but you have to be willing to put the work in to find them and do the necessary. These six things will help you with that and are often the best places to start, but every business is different, os you do you. Happy saving!