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Prof. Augustus Nuwagaba on how to reduce cost of doing business, boost entrepreneurial journey

By Prof. Augustus Nuwagaba

  1. Leverage free or affordable digital tools for project management, communication, and marketing. Platforms like Trello, Slack, and Canva can streamline operations without hefty price tags, enhancing productivity and reducing costs.
  2. Concentrate your efforts on what you do best. Outsourcing ancillary tasks allows you to focus on your expertise, leading to higher-quality work. It saves time and resources, enabling you to deliver exceptional products or services.
  3. Establish strong relationships with suppliers and negotiate bulk discounts. Consider long-term contracts for essential supplies, ensuring a stable price, thus avoiding sudden hikes. This fosters predictability in your expenses, aiding financial planning.
  4. Maintain lean inventory levels to reduce storage costs and minimise wastage. Implement data-driven inventory management systems to track demand patterns, ensuring you stock products based on actual customer needs.
  5. Reduce energy consumption in your workspace. Switch to energy-efficient appliances and utilize natural light. Small changes, like turning off unused equipment, can significantly lower utility bills, contributing to long-term cost savings.
  6. Conduct regular financial reviews to identify cost-saving opportunities. Analyse expenses, assess return on investment on various investments and adjust strategies accordingly. Being proactive in managing your finances ensures a sustainable business model.
    Always remember that reducing cost of doing business is not about cutting corners; it is about optimising resources and making strategic choices. By embracing these practices, entrepreneurs can navigate business landscape with financial prudence, ensuring long-term success.

Prof. Augustus Nuwagaba is a global consultant on economic development.

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