There are two ways to earn more profit at a business: increase sales and save money. Saving money can be a little tricky, especially if you own a startup or your business has been financially struggling.
Small expenses may not seem a big deal at first, but they can add up and incur a significant impact on your business cash flow. The practical solution is to implement a cost-reduction plan to save money over time.
Without balancing the finances, your business will fail eventually. Finding ways to cut costs is faster and easier than trying to increase sales. But saving can also be painful because it can affect the efficiency of your business. To make saving money easier, here are fool-proof ways how you can save money for your business.
Encourage energy efficiency
Leaving the computer on overnight and keeping the plug on incurs small electricity costs. Depending on the number of computers you have, turning off computers when not in use is still a huge savings opportunity.
Energy-efficient appliances can also make a difference in your bills. These are great technology solutions to save on utility costs. Some examples are smart light bulbs and programmable thermostats.
During cold or hot weather, instead of turning on the heating or cooling system, maximize the use of window drapes to control the temperature inside your office. You can find online stores that sell custom window shades made from quality fabrics. Curtains and draperies have energy-saving capabilities that help block cold and hot air from coming inside the window.
Going paperless is also a great way to save on supplies and utility bills. Instead of using printers and hard copies, why not exchange documents via email instead? What’s great about electronic copies is that they don’t easily get lost since you always have them stored on the computer unless you delete them.
Buy in bulk
Like any other product, buying in bulk saves more money. This applies to frequently used items and bigger purchases, from stationery, office furniture, software, and laptops. Purchasing from online suppliers or bulk warehouses saves more in terms of the shipping fee and product cost.
Start by analyzing your ongoing expenses and find the products you purchased randomly at middleman suppliers. Check online if they are available for bulk buying and compute the amount you can save.
Invest in DIY digital marketing
Instead of depending on a marketing agency, why not promote the business yourself? Hiring a marketing firm is very costly, but you can be your own spokesperson if you are passionate about public relations. Start by learning how marketing works for your industry and look for ways how to promote your business effectively.
Another strategy is to cut down traditional advertising. Publishing print ads and running ads on TV can be expensive. Instead, experiment on low-cost forms of digital marketing like inbound marketing—no need for paid Internet ads. Using SEO techniques for your online content and uploading YouTube videos can boost traffic to your business website.
You can also try social media marketing. The cost of using social media channels like Facebook and Twitter is completely zero. But make sure to stay active on your accounts by devoting at least six hours a week.
Hire capable employees with little work experience
Employee performance plays a significant role in the success of a business. That is why employees need to be efficient, whatever their roles are. So what should you do for underperforming employees?
Instead of putting up with their less-than-stellar performance, hoping to perform better, why not hire smart and capable employees with little work experience? Not convinced?
Keep in mind that experience is not everything, but it can cost a lot. Many companies have been using a fresh approach by hiring employees straight out of college. By hiring fresh graduates, you gain a monetary advantage by offering them an entry-level salary. Although hiring an experienced employee makes more sense, training a capable candidate who is willing to learn and do better is a more practical choice.
Consider remote working
Allowing your workers to work at home offers many benefits. First, remote working can improve the work-life balance of your employees. Second, keeping things virtual allows your business to avoid the cost of office space and operating costs. Remote working works best if you can convert your entire staff to a work-from-home setup.
Another benefit of remote work is cutting down on-site meetings. Instead of holding meetings, you free up time for your staff to getting more work done. Having virtual meetings is more productive by keeping the discussion lean and straightforward.
Cutting costs is a natural part of running a business. But cutting back doesn’t need to be painful. Other cost-efficient ways produce positive effects for your business. Allow yourself to be practical and follow the ideas above to save more and help grow your business.