Smart Ways to Cut Business Costs
Thursday, December 31, 2020, 6:00 PM | Leave Comment
The business world has seen better days. This year, COVID-19 caused a massive percentage of small businesses to close temporarily, but even those that remain operational are increasingly fragile financially.
It goes without saying that in these times, reducing costs as much as possible is of the utmost importance to keep your business afloat.
Here are several smart ways in which you can do that.
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Do an audit
To determine the best ways in which you could cut costs, it’s necessary to first do an audit to learn where exactly your money is going. Every business process costs money but not all of them are equally valuable. That is why you should closely assess every aspect of your business and determine how they could be more budget-friendly.
For instance, you might find that your current printers are not as efficient as they could be, and you’re spending a lot on ink cartridges. Or you might learn that some of your appliances are wasting a lot of electricity. This will give you the perfect starting point.
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Invest in tech
Today, technology is all around us. Still, some businesses are reluctant to invest in tech, failing to see the true potential of these upgrades. For instance, removing your landline and switching to VoIP is not only more affordable, but it’s also more flexible by being portable and scalable.
Investing in desktop applications that streamline your workflow will allow for better productivity, which naturally cuts costs. In addition, investing in tech does not have to cost you an arm and a leg; you can use open-source software wherever possible and buy used equipment.
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Go paperless
Investing in tech also means greatly reducing your paper consumption, which might even give you the opportunity to go entirely paperless. Needless to say, this would eliminate any kind of dilemma around printing, not to mention it would be much better for the environment.
But going paperless has even more benefits. Switching to digital communication instead of traditional mail and managing your bills and invoices digitally will save you both time and money.
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Cut your marketing costs
Marketing is often one of the greatest expenses for small businesses. That is, if it is not done in the right way. The past couple of years have showcased the power the internet has when it comes to marketing, and the best of it all is that it’s also a low-cost option.
So, forget about newspaper ads and printed flyers; instead, study online marketing. Social media, blogging, influencer marketing, and email campaigns do take expertise, but they have a high ROI you certainly want to leverage.
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Improve safety
While some workplaces come with more risks than others, the truth is that accidents can happen anywhere. This is why improving safety should be a top priority to protect your employees and prevent costly incidents. A workplace accident can be a huge blow to any business, considering how much paperwork is involved, not to mention the injured person’s absence will interfere with the normal workflow.
A safe work environment will allow you to spend less on workers’ compensation insurance, too. So, assess the current safety procedures, and make sure your employees are familiar with them as well. Investing in work safety training is an investment in the longevity of your business.
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Mind your utilities
Rent and utilities are a major expense for businesses. Therefore, they can be a good place to cut costs, too. Consider whether your business truly needs the amount of space you are renting. This year, a lot of employees around the world started telecommuting.
If this is the case in your company, too, you might be able to scale down and move to a smaller office space that will save you a fortune on rent. If not, you can start incentivizing telecommuting to see whether this would work for your business.
Utilities are another major expense so needless to say, you should try to reduce your electricity and water usage. For instance, a smart thermostat and energy-efficient lighting can save you a lot on electricity. You can even turn to passive energy-saving methods for the long term.
Even if your business is not struggling financially, reducing costs wherever possible will only benefit you. Use the resources you save on marketing, utilities, etc. to further develop your business and you will be on the right path to success.
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