10 Cost Cutting Tips for Small Businesses and Startups [Contributed Blog]June 27, 2020 - 11 minutes read - Contributed Posts, Startup
Saving money as a small business or startup can be problematic. You might not have a big budget to begin with and there are several inevitable costs of running a business. These ten cost-cutting tips are universal, but it depends on the operation of your business. Only you can make the decision to reduce expenses. With a proper analysis of your company’s spending, you’ll be able to find ways to cut costs as well. Here are some ways you can save money, and invest in the future of your small business or startup.
The advantages of keeping your office as eco-friendly as possible not only benefit the environment. Clients and staff will be inspired and impressed. Ostentatious design is frowned upon nowadays as a waste of money and resources. Keeping your company’s image “green” will send out a better message. There are many easy ways you can do this which will save you money as well.
Use recyclable containers and make sure employers reuse cups and plates rather than having plastic disposable ones. Encourage the use of recycled paper, so if it’s only been printed or written on one side, use it again.
Set electronics to stand-by or sleep mode when not being used temporarily or switch off completely. Sometimes a power-up can spend a lot of energy so maybe leaving it hibernated is better. Think of other machines that waste a lot of energy such as the air-conditioning and water heater. LED bulbs are also much more energy-efficient than others.
You can outsource infinite services on the cloud. Top cloud-based software can act in place of an entire department. By investing in technology, you will not only run more efficiently but you will also make a better impression on your clients. You will save money on overheads and increase employee satisfaction at the same time.
Google’s all-in-one G Suite is perfect to get you started. It also comes with Google calendar which is compatible with many other top business apps in 2020. Publish your diary and organize your business meetings with clients and employees in real-time. You can access this information at any time from anywhere.
Cost segregation analysis
With cost segregation analysis you can save your business money. Cost segregation analysis is used as a tax planning strategy and a smart way to increase cash flow by accelerating the depreciation of commercial building costs.
A “cost seg” analysis is a detailed engineering analysis of long-term assets such as newly constructed buildings, property acquisitions, and renovations. From the data provided by this analysis, businesses can accelerate tax deductions and improve their cash flow.
Outsourcing services remotely is a much cheaper option for small businesses. Rather than paying a permanent member of staff, you can keep your financial reserves for developing your company. Outsourcing services such as virtual receptionists, assistants, and data entry save you on paying an admin team. You can also outsource key departments such as payroll and marketing. Check out the six best online outsourcing websites in 2020.
A virtual receptionist can provide you with the support and assistance you need, without the extra costs of hiring an in-house secretary. It’s essentially a live telephone answering service where a qualified and friendly receptionist handles your calls with the same professionalism as an in-house receptionist. The experience for clients is in fact no different from speaking to an operator in your office.
Forecast sales and expenses
In order to plan and strategize for the future, you need to seriously evaluate your business in its current state. Plan what you would do if your orders increased overnight. Ensure that your company would have the resources to be able to cope with such a demand.
Put together a thorough sales growth forecast, based on an increase in customers, orders, and target revenue. Break down the numbers by month, and try to be as realistic and specific as possible. You then need to compare your expenses. Make a forecast for these as well and don’t forget to include upgrades in technology and infrastructure, new staff, and systems.
Brush up your digital marketing skills and DIY your marketing. Get to know how to really optimize your SEO and online marketing through your website. For local businesses, make sure your local SEO is up to scratch as well. This is the best way to make sure your website gets to the top of online searches.
Google My Business has become the creme da la creme of the local search. Using Google Posts on My Business can help you to track your local SEO. There are online guides on how to optimize My Business. Learn how to make the most of your listing. One way to do this is by engaging in social media often and adding links to your My Business listing.
Technology is key sometimes to saving money. If you are low on departments IT automation can do the work for you. You can cut costs and save on practical labor and workforce by automating a number of services. Email automation, for example, allows you to carry out email sequencing automatically.
With Microsoft Advertising automation you can really streamline your marketing strategy. Make adjustments automatically across your ad campaign with just a few clicks. You can even automate settings to change for you when you like.
Register your company with a centrally located, real physical address. You won’t need to pay nearly as much as the rent for the building, but it’ll give your business a physical presence. You can use this address for all your correspondence and contact information. Most virtual addresses also include the option to host meetings and conferences at the same location.
Your business will in effect be registered at a prime location while you work remotely from your virtual office. Most virtual addresses only cost a two-figure sum per month, so you can save hundreds on rent. You can even add it to your Google Maps and My Business listings. You’ll be able to make a big impression on clients for only a small fee.
Working remotely is becoming the norm and let’s face it, it’s easy to see why. With the amount of money you’ll save on overheads, and high-tech systems in place, there’s really no need for a physical office. More and more companies have their employees working from home these days.
With the flexibility to work remotely, you can then focus on growing your company. Your materials and workforce can all be sourced remotely. You can reach out to your client base remotely. The possibilities really are endless.
Review your operating expenses
Think of small ways you can reduce your operating costs daily. Operating expenses can be anything from wages, to maintenance, to coffee. The best way to reduce your spending is by reviewing these and figuring out where you can cut costs. Perhaps it’s as simple as buying coffee in bulk or switching brands of paper. It’s a good idea to use price comparison sites and go over your suppliers and make sure you’re getting the best deal. The more often you can review your expenses, the better.
Save money by continually analyzing your spending and budgeting. There are plenty of budgeting apps for businesses that can help you plan and organize your expenses. There are several ways you can cut costs with proper analysis. If you can learn how to manage your company’s spending you can save money this year.
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