Cutting costs as a business makes so much sense. However, there’s a need to take care over where you attempt to save money. The last thing you want is to undermine your own business without even being aware of it.
I know that it’s all too easy to look around at different areas of your business and feel that you could cut back on a few things without damaging the overall integrity of your company. But then, there’s no need for you to stress as much as you are right now. Instead, there are several areas where cost-cutting is not so difficult as I will now explain.
1. Switch To Social Media Marketing
Business may look at their marketing budget and think of ways to save money. But then, you don’t have to cut back on things as much as you think. Instead, I suggest investing time and effort into social media marketing. You will discover that this is cheaper than you expect.
Remember that these platforms are free to join. You can market on them via advertising where you decide on your spending limit, so even that won’t break the bank. By investing your time developing your profile and actively marketing yourself on these websites, there’s less need to spend cash elsewhere.
2. Look At Professional Fees
One area I would recommend checking has to be the professional fees related to your business. With this, I’m talking about how much you pay your accountant, or a lawyer, or anything else that you need to use as a service. Ask yourself if you receive value for money. If not, then drop them and go elsewhere.
Often there are extra costs incurred in order processing pees, especially if you're using a credit card company or an online payment processor such as PayPal. If instead, you choose to accept a cryptocurrency like Ethereum, which you can trade using an app like Luno, you will instantly start seeing savings.
For example, must you use a bookkeeper for everything? They can charge a lot of money, so learning how to do bookkeeping on your own makes sense. You always have an accountant there to help if required. Also, there are various pieces of software now available.
3. Cut Down On Paper
Businesses around the world are all attempting to cut down on the amount of paper that they use. However, it’s not all connected to them going green. According to statistics, 27% of all waste produced in the US comes from paper, and that is huge.
With so many things now done online, the idea of email receipts rather than paper is a good one to adopt. Try to go paperless, if possible, because you will not only save money on paper, but also ink costs related to reducing the amount of printing that you do.
There are a multitude of areas where you use paper when it’s no longer necessary. All you have to do is identify those areas because this is one cost cutting measure that could save you a fortune.
4. Use Your Employees Wisely
A business that has employees may reach the point where they believe that there’s a need to reduce staff numbers to save money. While those moments do occur, there are times where it’s possible to avoid it.
Having employees could take up a substantial portion of your income. But that makes it more important to get the most out of them. Understand their strengths and allow them to use those strengths. Providing them with additional responsibilities can cut costs in other areas or allow you to focus on different things.
Also, if you still cannot save enough money, then consider cutting back hours over a short period of time. Explain it to your employees and then leave the decision in their hands as to whether they want to stay or not.
5. Cut Back On Utilities
It’s shocking how much money is wasted on utilities. But then, it’s an area that is often then left unexplored when seeking to save money. Begin by studying how much money you spend on electricity and gas followed by identifying areas where savings are possible.
It may result in you changing supplier, or reducing the temperature to save money. Look at other costs such as your Internet bill or phone bill and see if anything can be changed there. If you save small amounts of money in a number of areas, then it’s surprising how it adds up.
Consider trying to get a smart thermostat that allows you to see where energy is being wasted. A number of power companies have them available, and it’s going to make a huge difference over a short period of time.
As you can see, the five areas that I’ve mentioned above could very well lead to different savings and any saving is better than nothing. Of course, the costs you can cut will vary from business to business but never do something that puts central parts of your business in trouble.
Stick to the five points I’ve listed and see the difference they make as you may get a surprise with what’s possible.
How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line 'Coronavirus Disruption' to email@example.com