One of the major hazards of running your small business is cost and operational overruns. Quite simply, reduce risk by reducing your costs. Also, by reducing costs, you can actually improve your cash flow.

• One of the best ways to reduce costs is to employ technology as much as you can. There are many technology alternatives that can save you money. If you need to meet with a client, perhaps you can employ one of the free teleconferencing technologies like Skype. Of course, there will be times when a face to face meeting is required but, for the most part, teleconferencing can save you some serious cash. In addition, pay your invoices and bills online. Save the paper, save the mailing costs.
• Eliminate those landline phones. Cell phone’s can be cheaper in the long run even if you get company cell phones. If you do the math, you just may discover that issuing company cell phones to everyone will be cheaper in the long run.
• Today, all of your advertising and marketing efforts need to be on television or online. If you are spending precious resources anywhere else you are wasting your money. Concentrate your marketing efforts online. That is where everyone is anyway and it can save you in the long run.
• Creating a budget and eliminating debt are two risk mitigating factors you need to tend to. Have an operational budget and don’t exceed it. It will allow you to plan for the future and to see where you are wasting valuable resources. Reducing your debt, especially your credit card debt, is inherent to your survival as a business. One of the biggest risks facing every company, regardless of size, is debt. Set up a payment program to get that debt to zero as quickly as you can.
• You may want to consider downsizing your current location to save monthly costs on rent and other relational costs. Staying as lean and as mean as you can means you can place more resources toward customer acquisition and customer retention. Those are the things that will boost your bottom line.

Slashing the costs of doing businesses can be a truly effective way of keeping your business afloat and thriving. See where there are areas that can be reduced or eliminated. The less financial risk you expose yourself to, the better.