Running a business can be a costly – well, business! In this article, we are going to look at a few of the ways that you can make a noticeable difference to your bottom line without affecting the efficiency of your business.
1.Reduce staffing costs
Having a good team around you is key to creating a successful business, but it can also be one of your biggest, if not the biggest, expenses. In the bigger picture, good staff helps you to reduce costs because they can deal with more routine jobs and significantly improve the productivity of your business.
One way of getting the best of both is to look at an internship program. This can benefit both you and the intern: the student gets good quality hands-on experience in a real working environment and can assist you with the marketing, administration and accounting tasks, and you get the help that you need for free.
If you need someone a little more experienced, look at hiring a freelancer. They are self-employed and are usually quite happy to work on as an ad-hoc basis, or short term contracts. They are responsible for dealing with their taxes, and you are not liable for things like maternity pay or holiday pay, saving you money.
2. Think about your technology
Forget expensive hosting packages for your website, where you have to pay a big chunk of money out upfront. Instead, look for pay monthly websites, where you can do as it says – pay monthly. Negotiate with whoever provides your internet service to see if you can bring the costs down, and look at how you use your printer. Are you printing out unnecessary documents to file away, costing you money in ink and paper, or could you store things digitally in an inexpensive cloud system?
While we do not deny that traditional print ads and direct mail campaigns work, we also know that they can be costly. Instead, get the word out about your business by connecting on a personal level with your target audience. Attend conferences and trade shows, where you can talk to potential clients and other companies within your industry. To connect with a more extensive range of people, take advantage of social media. Facebook ads can reach a vast amount of people for a relatively small amount of money.
4. Form alliances
We are often told to buy in bulk to save money, but sometimes, purchasing in volume can be a false economy if you are struggling to keep a positive cash flow or you don’t get round to using all of the supplies. One way of getting around this is to buy what you need and share costs with other business owners. Is there someone you can split the cost with, saving money? Working in partnership can bring about many benefits.
The best way of all to save money though is to review your outgoings regularly and track any costs that seem to be rising and to be continually thinking about how you can cut costs in small, but noticeable ways.