While many of us are guilty of wasting money when we don’t need to, if ever was a time to start thinking of cutting back on business costs, it’s right now! The uncertain economic minefield we find ourselves in means businesses cannot afford to be losing even more money. Even the slightest increase in profit can make all the difference, provided you make some smart decisions. However, reducing business costs can be a tricky affair if you’re not sure where to start so here’s some strategic tips to help you save money in the long run.
1. Implement Solid Marketing Methods
If you’re just dabbling in social media marketing, start building effective social media strategies to grow your brand and find out who your customers are. Although you shouldn’t give up entirely on paid advertising, utilising free online platforms is more cost-effective. Spend time working out which platforms are better suited to your product or service, and then capitalise on them. If you outsource to a professional, consider hiring a freelancer for a limited time, rather than hiring the work through an agency. Alternatively, take a course or research online to further reduce business costs.
Similarly, boost networking opportunities to build up solid relationships with your customers, so they in turn, recognise your branding as a trusted business to deal with. They’re more likely to recommend your business through word of mouth or online reviews too. One solution is to reach out through an email list as an effective way, You can also use referral programs, discounts or vouchers to connect with them.
2. Get smart with technology
There’s almost always ways of finding free alternatives for paid products. For example, swapping Microsoft Office for Google Drive or Canva for Photoshop. If you don’t already use cloud computing, now is the time to get on the bandwagon. This will ensure you always have access to storage on demand without having to pay out for on-going IT services. In this instance, a cloud provider will take care of any data recovery issues that might arise.
Unless a specific software is needed to run your business, it’s relatively easy to find substitutes to help reduce business costs. If anything Covid has taught us, it’s the ability to adapt and work from home via virtual technology for meetings, rather than travelling to one, so keep using this method of communication.
3. Re-evaluate your spending
So many businesses tend to lose hundreds of pounds simply by paying out for bills that are unnecessary. For example, how many apps, memberships or subscriptions do you have? And, out of these, how many do you actually use? Make it a rule to stop paying for those things you don’t need, but first sit down and do your accounts, which is something you should be doing on a regular basis anyhow. If you take out free, short term subscriptions, set an alert to let you know when the trial runs out.
Staying on top of your other business bills is equally important. Can you get a deal on your energy bill, for example? Do you need to move a loan to a zero percent balance transfer? The only way to know what’s needed is to thoroughly go through your accounts and compare providers to see how you can reduce your business spending.
All of these strategies also take careful time-management skills, as the old adage says, ‘time is money’! If you know your own business goals and are efficient with your time, then the chances are you will become more productive and reduce business costs to be more profitable.