For many business owners, the goal is to earn profit while keeping overheads and expenses down. This is especially true in a struggling economy, where a minor mishap can trigger major financial problems. For a company to be liquid, financial measures should be taken right from the start. For instance, if you’re a non-resident starting a business in Malaysia, you can better safeguard your business interests when you work with a company secretary in Malaysia. You can leverage their local knowledge of the business landscape to better navigate the many twists and turns. If your business is already up and running, cost savings can happen in different avenues.
Lease Equipment
The upfront cost of buying equipment can put a dent in your capital, not to mention the ongoing expenses for maintenance and repairs. It may be more cost-effective to rent machinery, especially those you don’t use regularly. Of course, it’s a different story if said equipment is part of the daily business operation.
Outsource Where and When Possible
Outsourcing, especially for a small business, is a great way to save money and still get the job done. There are many experienced freelancers who can help with business processes that can be delegated to outside contractors. This is especially true for ad-hoc or project-based tasks. To ensure success, it’s best to build strategic partnerships with outsourcing agencies.
Negotiate With Vendors
Most small business owners make the mistake of not negotiating a better price with their suppliers. Vendors want to stay in business too, and they will work out deals with their existing clients rather than lose them. So secure better deals on products or services where possible so you can significantly reduce expenses. Are they offering discounts if you meet certain terms and conditions? Even if they don’t, ask. Then, find ways to earn those discounts.
Go Paperless
Switching to a paperless office means reduced printing and storage costs. No need to buy or store ink and paper. Eliminating the printing process also saves you time and effort. This can improve overall efficiency because documents can be shared digitally and then saved in the cloud. A paperless system may also qualify you for tax credits and incentives. Review tax information in your business domain and find out.
Implement Rules for Advance Cash Payment
A good way to protect against business loss is to collect cash up front, even when extending customer credit. For instance, you can set a 25% down payment on succeeding purchases and transactions. You should also take a proactive approach to collecting payments. Send reminders before payment due dates, follow up on overdue accounts, and offer payment plans if a customer struggles with repayments.
These are just some of the strategies that you can implement to save on business costs and expenses. With the right strategies, from leasing equipment to going paperless, you can protect your company against insolvency. If you need help navigating Malaysia’s business landscape, Acclime Malaysia can help with a complete suite of corporate services. Schedule a discovery call today to get started!
