March 20, 2015 | Sharon Cheong
Sometimes small business owners in the Philippines wait until their business is in trouble before they start looking for ways to cut costs and expenses, but today's savvy entrepreneur will take precautions from the beginning. If you wait until cash flow is limited and bills are behind, you'll be under such stress that you might not make wise decisions. Start your cost-cutting strategies from the beginning so that you can always be assured of a good profit margin.
There's no one-size-fits-all approach that works for every business. As a small business owner in the Philippines, you must discover the best strategy for your company. Set your sights on boosting your profits as well as cutting back on day-to-day expenses.
The first thing many businesses do is analyze their current spending. Your accountant can help with this. Most accounting software now does a very good job of showing you exactly where the money is going each month. Once you know where you're losing cash unnecessarily, the next step is to address those specific losses with workable schemes that achieve your goals. Let's say your utility bills are too high. Perhaps your employees are leaving lights, computers, copy machines and other equipment running 24 hours per day. This is an easy fix once you've nailed down the problem.
Don't stop there though. Look for other areas where significant cuts can be made without harming the efficiency of your employees. Vehicles and vehicle maintenance is usually a very high expense for most companies. Check into leasing vehicles. That way the expenses are predictable each month and if anything breaks down, you're not responsible. Another expense category is telecom or communications. Look around for the best providers offering the lowest prices. A good negotiator can get extra services at a reduced price. You may have to sign a two-year contract, but it could be worth it if the savings are great enough.
Reducing the IT Budget
There are numerous highly skilled IT professionals in the Philippines. These are hard-working, intelligent people who are up for any challenge. Their fees and rates are often 50% lower than countries like the UK or US. The literacy rate is also very high in this region of the world. In fact, the literacy rate is above 90% and that's why so many countries go to the Philippines for their outsourcing needs.
Web Design, Programming, Mobile Apps
You might be able to save up 60% on your web design and programming tasks by outsourcing to the Philippines. You can also find companies there that will design and build mobile apps for 40-60% less than an American company. Filipino programmers have excellent skills and are willing to do the job cheaper because their cost of living is lower than in most other nations. Be sure to ask for references and view their past projects to make certain they can deliver on their promises.
Hire Contract Labor
Explore hiring contract labor as opposed to hourly employees for certain tasks. Filipinos are usually hard workers and you won't have to pay employee benefits and bonuses. This could shave quite a bit off your production costs while not lowering any of your quality.
The Philippines have multiple geographic areas, such as Makati City that offer inexpensive commercial space. Remember, that if you need an upscale front office where you can meet with potential clients, there is plenty of serviced office space available. This allows you to have an impressive office that will tell your customers that you are truly successful for minimal costs.
Makati City is a major financial and commercial center in the Philippines. It boasts high-end shopping, highly competitive pricing and it is home to the country's tallest building, PBCom Tower. Metro Manila has an incredible cityscape that offers magnificent residential and commercial structures. The multicultural lifestyle attracts investors from all over the world.
Save with Serviced Offices
Many successful business owners have taken this approach. You can locate your main facility in a lower rent area, but lease serviced office space that will be available when you need it. Often, business owners only need a prestigious office for specific meetings. Avoid the ongoing expense of a beautiful upscale office by leasing one of Servcorp's luxurious serviced offices in the Philippines. Servcorp Serviced Offices provide you with a wide range of excellent services at lower costs.