Running a business can be extremely expensive. In fact, 82% of businesses fail because of a lack of cash flow. However, if you reflect on what your expenses are, you might find that some of your expenses are unnecessary! Follow along to see how you can reduce your business costs.
1. Lower your financial expenditure.
There are a few ways you can reduce your financial expenditure. Some examples are cutting the cost of supplies, evaluating employee benefits, and utilizing more technology.
If your supplies are becoming too expensive, look for other vendors. Amazon Business and Walmart are able to sell supplies in bulk at a fraction of the cost. This is an easy way to reduce your liabilities.
For employee benefits, evaluate your insurance policies and financial accounts. Compare insurance providers to ensure you are getting the best rate, and consider consolidating your insurance policies to save more.
Lastly, consider integrating more virtual technology into your cost reduction strategy. Using Zoom or Google Meet can save on travel times and can reduce the need for office spaces. Moreover, remote work does not mean any contact either! By using Slack or Microsoft Teams as well as utilizing programs such as Google Drive, you can effectively stay up to date on what your employees are doing throughout the day.
2. Use modern marketing methods.
Marketing does not have to be expensive; in some situations, it can be free.
For example, many businesses use a newsletter or email list to have their clients stay informed on what their company is doing. You want to keep your clients engaged in your business so they are more likely to keep you in mind for their business needs. If you really want your clients to come back, give them a special discount or offer a free webinar— they will appreciate it!
Use social media as well. Nowadays, people are looking to social media more than ever to decide what company they should do business with. By building an online presence, people will see that your brand is legitimate and provide quality services to their clients.
Lastly, you likely need to network more. Referrals are a powerful business tool anyone can use. People are more likely to use companies that their friends or family recommend, or that they simply recognize. Invest in your relationships and they will benefit you greatly— it barely costs a dime!
3. Go green.
Being environmentally conscious is known for being costly. However, you can actually save money by going green! By implementing eco-friendly changes such as going paperless, a digital invoice system, and updating appliances, you could save hundreds or thousands of dollars. Plus, the environment will thank you for it.
4. Consider remote work.
With COVID-19, our lives completely changed; most of our daily activities were confined to our home, and work was no exception. And, perhaps surprisingly, people liked working from home! Studies show that remote workers were happier and more productive as a result. That sounds like a win-win to me.
5. Invest in technology.
It may be costly at first, but it will be one of the most fruitful returns on investment (ROI). Robotic process automation can ease the burden of repetitive, transactional-based tasks off of employees, ultimately leaving more time for building trusted advisor relationships or other projects. These technologies are incredibly efficient, and with a society moving towards more AI to do more menial tasks, it would be wise to utilize more technology to help cut costs.
Which one of these tips do you think you will use? Comment down below! After that, follow us on Linkedin at “Encompass-CX” for more updates and blog posts!
Co-written by Alexis Audeh