Not sure if your company will survive the next quarter? Does the idea of cost-cutting give you unnecessary headaches?
Here’s the reality of owning a small business. As much as you’d like to focus all your energy on increasing sales because it’s exciting lowering expenses is crucial for your profitability.
Small bakery? Check if your supplier isn’t increasing the flour’s price.
App developer? Remember that airfare is more costly than ever and that virtual meetings are in.
Creating a list of your most unnecessary costs can be draining. But it’s the only route forward if you want to balance your company’s financial health.
1. Double Check Your Supply Costs
If you have dusty telephone landlines piling in the corner of your office you should get rid of them. What does this have to do with reducing expenses? A lot.
You’re probably dealing with a traditional phone service that was costly to install and costlier to reconfigure. It’s time to make the switch. Cloud-based phone systems are ten times cheaper and more reliable.
Other types of money grabbers in your business are wholesale supply purchases. Make sure to grab the best deals on the supplies and don’t feel embarrassed to hunt down discounts!
Now, should you buy used equipment if necessary? Yes. These include printers, copiers, packaging equipment, and furniture.
Don’t get too excited with that shopping list, though. Remember to keep track of your operational efficiency and adjust order on the use of available resources.
Don’t include the dusty landlines.
2. Upgrade to Virtual Technology
When you get rid of those lines think about something else.
If your company can communicate in a virtual manner, make it happen. According to an Entrepreneur article, virtual meetings can lower travel and office expenses. It can also make productivity the most important focus of the business.
By adapting to virtual technology, you not only reduce business costs, but you can build a strong communicative team and boost job satisfaction.
Guess that having someone observe us under a microscope doesn’t lead to consistent productivity. Good to know right?
Most American are working remotely, with 23 percent completing work away from the office. Companies that favor remote work rely on technologies like VoIP (Voice over Internet Protocol) phone systems.
Many refer to it as internet calling because it’s an alternative way of making phone calls that can save you money. Oftentimes the calls are completely free.
Want to get a VoIP Phone System Installation? Good. That means you find value in investing in technological services that benefit your company objectives.
A consultation with the right IT service provider can guarantee that you’re up to date with network security and the latest data recovery systems.
3. Travel Light
We’ve already discussed how virtual meeting systems can replace the time spent in an office. Simply put: don’t hesitate to reduce your company’s transportation costs. Especially now that travel costs are on the rise.
According to British telecommunications firm BT Group, video conferencing results in annual savings of $259 million for the company. Increasing telecommunication practices lower utility costs and help keep money in everyone’s pockets.
4. Take Advantage of Social Media Advertising
On another note, we all know that traditional advertising is really expensive. And most small businesses won’t and can’t afford it.
Social media advertising is the best alternative. The ads are cheaper to produce, and sometimes you don’t even have to pay for advertisement if you take the time to engage with your company’s clients.
Start reading the latest social media trends of 2019 and try to apply them to your business. Learn about your target market and choose a social platform that reaches your primary audience.
Platforms like LinkedIn are beneficial to B2B companies, while Snapchat and Instagram are great platforms to target Generation Z.
After you define your marketing goals be ready to maintain an active and engaging account. An organic social following can make you reach even more customers without spending time or money, and your clientele will thank you for it.
5. Pay Attention to Time Management
Procrastination is not your friend, pal. If you have limited resources and your team wear many hats, saving time is a crucial cost-cutting strategy.
Focus on implementing time-tracking methods to tell your team accountable and invest in project management apps. These two steps improve inter-organizational dynamics in the workspace without having to single out people.
Always make the most of your business days by tracking goal settings. A list can look like this:
1. Improve Customer Service
2. Engage in Marketing Brand Awareness
3. Cut business costs by 15 percent next quarter
You will soon realize that business is never slow.
6. A Cost-Cutting Strategy Focused on Quality
There are a lot of options available for customers out there so you may be wondering if quality and reputation still matter. Yes, it does.
If your service and/or products are of the highest quality clients stick around. Since the cost to attract new clients is always higher, this is a great approach to save money.
But, tackling new customers also helps you analyze consumer patterns. If you learn to work with new clients and steady customers, congratulations! It means you have a lot of options for generating revenue.
Studies have shown that customers will most likely pay for a product of higher quality. If you fail to meet the expected standards, customers will look elsewhere, regardless of the price.
Focus on quality and the business’s reputation will be strong.
7. Control Your Location Costs
Do you remember a few headlines above how we discussed the need to operate the working space efficiently?
This also means to keep tabs on location costs, and the possibility of relocating if you own business space. If this isn’t something you’d consider doing, begin to think about what numbers are in your favor and list your commercial rent, taxes, and labor costs.
8. Welcome Freelancer to the Team
If you have a polished freelance contract that sets the right expectations welcoming freelancers and independent contractors to your team can be cheap.
Most freelancers know that their employment won’t necessarily include health insurance benefits or paid time off. According to a LinkedIn article, 70 percent of small business in the U.S. has hired a freelancer in the past. The statistics show that the trend has been effective in helping business boost profit and productivity.
It’s important to emphasize that freelancers are usually hired to work remotely.
Desperate Times Call for the Appropriate Measures
It’s pretty easy to figure out if your small business is doing well. Not too easy if it isn’t. But here’s the good news, it can become almost bearable to save money in your business if you can keep up with these steps. Want to learn more about technological solutions for your small business? Be sure to visit EasyWork.net