Established organizations, small start-ups, and every business in between must make it their mission to spend as little money as possible. Yet, many business owners are guilty of unnecessarily paying for goods, services, or salaries that drain profitability and may lead to debt or closure.
It doesn’t matter if your business is struggling financially or enjoying a healthy revenue, you mustn’t spend a penny more than necessary to ensure your brand’s survival. Read the following eight clever tactics for slashing business overheads.
- Run a Greener Business
According to KPMG’s 2020 Survey of Sustainability Reporting, 80% of leading international companies now focus on sustainability. While the pressure is on big firms to run greener businesses, small to medium-sized enterprises also have a responsibility to run more environmentally friendly businesses.
If you have yet to do so, you might be pleased to learn that running a greener company could save your brand a substantial sum throughout the years. For example, introducing energy-efficient lightbulbs, powering down PCs each night, and turning off lighting when not in use will save your brand a significant amount on energy expenses. Also, you could reduce the cost of office supplies by running a paperless office, as it will reduce the need for paper, printer ink, and stationery.
- Buy Recycled Equipment Over New
Purchasing desks, chairs, computers, or projectors shouldn’t cost your business a fortune. Take the pressure off the company’s bank account by buying recycled equipment over brand-new items.
For example, you could buy refurbished computers, upcycle a breakroom table, or incorporate second-hand desks into your office. It is a great way to save money, and it will align with your brand’s environmentally friendly image.
- Hire Temporary Employees
Permanent employees might feel like an essential investment, but they aren’t always necessary. Instead of committing to many large annual salaries, you could hire hardworking, temporary employees to complete tasks. It is a perfect option for seasonal businesses or companies experiencing a brief busy period and needing a little extra help from talented professionals. Find temp agencies near me to find the right interim employee for your business.
- Make Bulk Purchases
Many organizations make the mistake of buying a small number of essentials to take the pressure off their finances. However, this tactic could increase your company’s overheads. Save your business a substantial sum by buying items in bulk when possible. By doing so, you could lower the amount of money you spend per item, which could protect your company’s finances. It is a perfect option if you have the warehouse space to store large orders, as you will receive a bulk order discount and only commit to one delivery fee.
- Automate Your Tasks
Time is money in business, which is why you shouldn’t overlook automation. Using computer programs and AI, automation tools will save your business a substantial amount of time and money, as they can complete time-consuming tasks in an instant. As a result, it will improve quality, lower costs, and boost efficiency.
For instance, email marketing automation software will send emails to customers on your database. After creating one email, you can schedule a message to arrive in your subscribers’ inboxes, which prevents the need for sending one email per customer manually.
Another option is invoicing automation. Unfortunately, manual invoices are susceptible to various problems, such as human error or missed payments that may result in late fees. Automating invoicing will ensure payments are accurate and sent on schedule each day, which can protect your company’s reputation and finances. The right automation tool could save your business thousands of dollars each year.
- Recruit a Qualified Accountant
Hiring an accountant might seem like an unnecessary expense, but it could reduce your annual overheads. As they will handle every aspect of your company’s finances, they can improve accuracy and prevent financial mistakes. For instance, a qualified accountant could identify potential tax deductions to save thousands of dollars each year. Also, they can make recommendations for lowering your business expenses. You can guarantee they will be worth every penny of their salary.
- Downsize Your Business
Letting go of team members might not feel easy, but it might be essential for your company’s survival. Downsizing will slash your overheads, as your company will no longer be committed to expensive annual salaries. If you experience busy periods, you can hire temporary employees to fill the shortage. Also, if you need to hire employees in the future, recruit staff with a wide variety of skills and experience to minimize the number of staff members on your payroll.
- Turn Your Customers into Brand Ambassadors
Small businesses reportedly spend approximately 1% of their revenue on advertising, which varies from paid social media posts to PPC campaigns. While it might not sound like a substantial sum, the marketing costs will likely cost companies thousands of dollars throughout the year. As small businesses often have small margins, thousands of dollars on advertising can place huge pressure on their finances.
If your company’s marketing budget is draining your profitability, you may need to decrease your advertising budget and focus on turning past customers into brand ambassadors. Happy customers can become your biggest marketing tool, as their impartial recommendations could increase your brand’s web visits, social media following, orders, revenue, and brand recognition.
Turn your customers into brand ambassadors by introducing a customer referral program, requesting honest reviews online, or encouraging them to share a landing page with their loved ones.
Conclusion
Saving money might feel like a tall order in business, but there are many ways you can lower your overheads and enjoy greater financial security. You must never be afraid to make tough financial decisions when running a brand, as tighter control on the company’s cash flow could improve its longevity and protect your employees’ jobs. Therefore, you may need to downsize your team, hire temporary workers over permanent staff members, and change your marketing tactics to protect your brand’s bottom line.
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