Cost Cutting Ideas for Your Small Business

Own a small business and need cost cutting ideas? You are not alone. Cutting costs is something small businesses are forced to do to thrive in any market. Small businesses are hit the hardest during a recession. Small business owners need cost cutting ideas to survive. Small cost cuts can help stretch a small business's bottom line.

Employee salaries and benefits are usually the biggest costs for a small business. Cutting back on salaries is a cost cutting idea with results a small business can see immediately. Talk to your employees about voluntarily cutting back hours. Many would rather cut back on hours to avoid layoffs. Make salary employees take a week off without pay and cut hourly ones down to a 32 hour work week.

Health insurance can cost small businesses thousands of dollars a month. Switching to a high deductible insurance plan is a cost cutting idea that doesn't cut benefits. Businesses contribute a set amount per year towards the deductible for each employee.

Small businesses cut costs because they usually cost less than traditional health plans. Employees benefit by rolling the money provided by the company each year to avoid out of pocket costs. Talk to your health insurance provider to find out how you can use this cost cutting idea but still cover your employees.

A good cost cutting idea is to have employees work from home. Some small businesses are getting rid of traditional offices by encouraging telecommuting. A small business can cut thousands of dollars a month in rent, utilities and insurance. Businesses can downsize the office to cut rent costs if enough telecommute.

Another cost cutting idea is to cut back on computer software licenses by trying an alternative work schedule. Many software licenses are charged by use or by machine. Buying additional licenses can be costly. By having employees work alternative work schedules, they can share software licenses. Be sure to check license agreements first so you aren't violating any agreements. With some operating systems licenses costing upwards of $180, this idea can cut significant software costs.

Despite using these cost cutting ideas, a small business might need more help staying afloat. Check your state department of commerce website to find financial assistance.

You can also try the U.S. Small Business Administration at www.sba.gov/index.html.

These cost cutting ideas can help your small business survive. You've worked hard to realize the American Dream of owning your own business. Follow these cost cutting ideas for your small business so you won't have to watch that dream slip through your fingers.