Doing what you can to reduce costs can make a major difference to your small business, since you are likely operating on razor-thin margins, and even minor tweaks will benefit your budget.
So what options do you have for making savings while avoiding compromises?
Read on for a rundown of what every entrepreneur needs to know about financial efficiency.
Staffing costs can be steep for small businesses, and yet if you don’t expand your team, you’ll struggle to compete with larger rivals.
This is where outsourcing comes into its own, as you can get experienced, qualified third parties to handle all kinds of business processes while retaining your existing in-house team size.
There are some outsourcing best practices to stick to, and it’s also important to not become overly reliant on external vendors and contractors. However, for everything from IT support to HR, outsourcing can save small businesses a bundle.
Embrace organic marketing
While paid ads have their place, the cost of running campaigns to generate custom for your up and coming company can be prohibitive. Even in the world of targeted social media ads, the cost per click can spiral.
This is why it pays to invest your time and money into organic marketing tactics as well. This might mean focusing on building an email list of existing customers and engaging with them to earn their loyalty. It might mean rethinking your content strategy to secure more shares on social media, and achieve a higher rank for your website on SERPs.
Whatever you do, don’t see paid ads as the be all and end all of your marketing strategy, but instead aim to integrate organic efforts as well.
Look for cheaper car insurance deals
If your business relies on vehicles to deliver goods, distribute stock to bricks and mortar stores, or visit clients in the field, then insurance is a must.
Of course the cost of insurance can be steep, particularly for cars that are being used for commercial purposes.
This is where using a site like cheapinsurance.com is wise. You can get quotes from a range of providers, find business-friendly policies and also acquire group discounts when seeking cover for a fleet of vehicles.
Adopt remote working policies
If you let employees work remotely, and even hire full time team members on the basis that they’ll telecommute rather than visiting the office in person, savings can be made.
For example, rather than needing to expand the footprint of your physical premises to accommodate new hires, you can rely on remote workers to help your business grow without facing steeper prices for office rental.
Likewise if team members work remotely, they won’t need to worry about commuting, and any travel-related expenses that you might incur in this context are swept away.
Even aspects like on-site utility bills and everyday office consumables won’t be affected as your business grows, hence why remote work is well suited to small organizations as well as large.
Allocate resources appropriately
Specifically in terms of staffing, it’s not uncommon for businesses to end up assigning duties to people who aren’t really trained or experienced in the area in question. This usually leads to sub-par results, and also means you’re wasting people who have abilities that are relevant to other areas, all in the name of spreading the workload evenly.
Ultimately it’s about ensuring that every member of the team is able to get on with jobs that are within their wheelhouse, rather than assuming that it’s fine to make all employees accountable for similar, overly broad workloads.
Ditch unused services
Taking stock of the services you’re paying for and weeding out any underused or entirely ignored elements is another key to cutting costs without sacrificing anything.
A great example of this is if your business has a traditional telephone system which you are paying to maintain, but which is rarely actually harnessed from day to day, because employees instead communicate via email or through mobile devices.
Trimming the fat can also take place if you have adopted digital, connected services which once seemed vital, but turned out to be imperfect for your needs. Whether that’s a cloud storage package that isn’t pulling its weight, or even an employee benefit that no one is taking advantage of, it’s your duty to scrutinize expenses like these and eliminate the dead wood.
Every small business can cut costs, if there is the drive to make changes that will lead to greater efficiency. Hopefully you can see that you don’t have to completely alter the structure of your company to feel the benefits.
That said, you should also measure the impact after any cost-cutting efforts to see whether you’ve actually achieved your aims.