When it comes to running a business, costs can quickly rack up. In a year such as 2020, when many companies are having to reign in their spending, it is more important than ever to take a look at costs and cut back where possible. With lockdowns meaning the future of companies is more uncertain than ever, you want to look at how you can reduce expenditure without having to get rid of any staff members. Here are some top ways that you can save on your business costs…
Save on Your Business Costs: Improve your marketing strategy
Your marketing strategy is one of the most important ways to save money for your business. It could be that you are spending money on the wrong strategies and you need to analyze where it should be spent instead. For example, you could be spending a lot on printed advertisements, but find that you are getting most of your traffic or referrals from social media. If this is the case, you should change your tactics around. Reduce your spending on the element that’s not bringing much in (such as printed ads), and then track to see if it makes a difference in your sales. If it doesn’t, then you have saved yourself a good amount of money.
Switch to video conferencing
If your company requires a lot of traveling abroad or around the country to meet with current clients, or pitch for new business, this can be very expensive. Not only are you covering travel costs such as flights, taxis, and petrol, but also hotels and meals too. To save on all of these costs, it is a good idea to look into video conferencing which will enable you to do the same meeting but without spending anything. This is a particularly good idea in the current climate as Covid means it is unsafe to travel. There are many video conferencing options out there, from Zoom to Microsoft Teams that you can try.
Save on Your Business Costs: Negotiate with suppliers
If you have been working with certain suppliers for a long time, it is worth asking them if they can offer a loyalty discount for your continued service. You could also do this if you purchase a lot of one product – for example, phones or computers. As you are buying in bulk for your business, that company could give you a discount for this, saving you money. You could also offer an exchange in services, so if you run a marketing agency, for example, you could offer them a discount on your service, in exchange for them doing the same for you.
Save on Your Business Costs: Look at the bills you can cut down on
The chances are that with the bills you pay, they can be cut down in one way or another. Look at your phone and internet usage and tariffs and see if there is a way these can be cut down. It could be that you pay for a very high number of minutes with your phone, but don’t go anywhere near this each month. If that is the case, try switching to a lower tariff. You could also do the same with your internet provider and find out if there is a package you can get that covers both your phone and the internet. If you make lots of foreign transfers and need to transfer money to China or somewhere else around the world, there is a better way of doing this. Some companies can charge high fees, so it is worth looking at different systems.
Consider hiring an intern or apprentice
An intern or apprentice is a great way to save some money in your business while also getting work done that needs to be. You can get paid to have an apprentice and you need to pay them a much lower wage than a full-time employee. It helps them as they get qualifications and real-life work experience too. It is a good idea to get a dedicated intern or apprentice with a specific role in mind – you could find they’re such an asset you decide to take them on once their time as a trainee in your company has finished.
These are just a few ways to try and save on your business costs. Try each of the above and you are certain to see a difference in no time. It is important to keep working with trial and error (such as with your marketing budget) and work out what saves you money but also doesn’t adversely impact your business in a negative way.