Do you struggle to balance your business’ budget, or wish that you had more cashflow? Increasing revenue is one to do this, but cost-efficiency is the easier way to make room in your budget. Even if your business is growing, you still need to save every penny for those rainy days which are sure to come sooner or later. This doesn’t necessarily mean making drastic budget cuts – the only thing you need is a cost-efficient approach.
Here’s a list of a few lesser-known tricks to help you keep the costs down and save money for your business.
Hire Inexperienced, Skilled Employees
If you are looking to hire a new employee, you may not want to necessarily hire the most experienced person. Instead, go for the candidate who does not have lots of experience but has the right skill set – and attitude – for the job. Experienced professionals demand a higher pay grade. On the other hand, inexperienced candidates wouldn’t ask for a higher salary.
Cut Down on Traditional Marketing
It can be quite expensive to market your products using traditional tactics. However, this doesn’t mean that you have to abandon your marketing. All you have to do is go for more modern marketing techniques.
The most prominent example of modern marketing alternatives is social media and other digital marketing. Social media marketing costs a negligible amount, but the effect on your business can be revolutionary.
Provide Perks Instead of Monetary Rewards
To reward your staff, you can go for non-monetary options. Instead of providing financial incentives like pay raises or bonuses, give them other kinds of perks.
For example, you can provide your staff with Spotify premium accounts or one-day excursions to a local attraction. This ensures that your employees get rewards for their great work while protecting your budget. Generally, such perks are less expensive than monetary incentives.
You might have to visit another city to meet with a prospective client, and it can leave a huge dent in the business’s finances. From hotel bills to commute expenses, business travel can be pretty costly.
Therefore, it is advisable for businesses to organise virtual meetings. Virtual meetings do not ask much of you – the only thing you need is a stable and working internet connection. This will save you time as well as the costs incurred involved with travel.
Word of Mouth
Word of mouth is a strong marketing strategy that does not cost you anything at all. Encourage your customers to put in a good word about your business on social media platforms and review sites like Google. Ask them to write a good review about the business and leave a five-star rating.
In return, you can provide the customer with an extra discount on their purchase. This kind of marketing strategy can be great for both customers and the business. And it will also draw new customers to your business.
Avoid Bulk Buying
This advice may differ from the old trick of bulk buying your products at a discount. When you purchase a large number of office supplies from a vendor, you might feel like you have saved a lot of money.
However, you’ll need to set aside space to store these extra supplies, which is an expense in itself. And over time, many of those supplies may end up getting lost or damaged, so you’ll have to buy new supplies after all, meaning a double expense.
Cut Down on Expenses, Not on Employees
If you are in a position where you’re thinking of letting go of a few of your employees because of financial issues, consider this instead. Instead of laying off your employees, you can simply put a cap on expenses. When you put a cap on expenses like telephone bills or commuting expenses, the employees will use the company resources more efficiently.
Set up your Office Efficiently
If you are still in the early stages of your business, this tip can be helpful. When you look for office space, ensure that the property has access to good natural lighting. Natural lighting will help cut down your electricity bills, and none of your resources will go unused.
You should also ensure that you have a phs wastekit that you can use to dispose of any office waste efficiently, as this will saves you greatly on space and expenses.
When you really put your mind to it, you can discover a huge range of options to cut down the running costs of your business. Ensure that you do not go for the first option that caters to your needs, but keep instead keep looking for alternatives.
With these tricks, your business can save significant amounts of money. You can also try negotiating with numerous vendors and weigh up the pros and cons. You should pick whichever vendor is the most cost-efficient for your business.