A business is always looking to cut costs, but as a growing company you may be nervous about reducing spending in the wrong areas.
We’ve put together a list of five top methods to cut costs in your business that could help you invest more wisely and push your organisation to the next level.
1. Embrace remote working
In recent times, the advancement of remote working technology has been necessarily rapid. Companies that would never have dreamed of allowing employees to work from home have been faced with the task of implementing remote working protocols and negotiating the potential complications this could cause. While some have struggled, many industries have realised the benefits that remote working can offer, including the significant cutting of costs.
Initial spending on remote working systems may feel daunting, but the reductions in office space costs are significant. Not only can you avoid the costs of renting an office, but also for heating, lighting and running it. Additional costs that could be saved include insurance, taxes and office equipment. Furthermore, remote working can remove the need for costs related to catering and other benefits such as gym or nursery facilities, while ensuring your staff members still thrive thanks to a better work/life balance.
2. Cut supply costs
Every penny saved during the supply process is a penny earned by your company, so it’s vital that you get the best deal possible. A simple method of managing your money is to constantly manage your supply costs by regularly checking for new discounts or alternative suppliers.
In addition, some discounts can be earned by simply paying your bills early, so it’s worth keeping your eye open for these opportunities. However, the flip side to this is that many companies will charge you penalties or increase your costs in the future if you fail to pay on time. To avoid this, make sure you pay your bills promptly and prioritise payments for your most trusted and regular suppliers.
3. Cut advertising costs
The ongoing development of the marketing and advertising industry means it’s almost always possible to save money. Begin by calculating your current spend on various forms of marketing, including general advertising, social media, PR and other content.
Once complete, use these figures to identify the areas where you’re not producing worthwhile results. Wasteful marketing methods should be replaced with less expensive alternatives. For example, could you replace sponsored content with an increase in in-house social media content? Or perhaps you could avoid travelling to trade shows in place of a boost in direct marketing? There are many analytics tools available that can assess your marketing and help you establish where you’re seeing the greatest success.
4. Streamline your finances
Modern business technology has made it easier for business owners to juggle their finances. Accounting software is now commonplace, making it possible for companies to deal with expenses, income and taxes in a single place with minimal effort. For businesses with an accounting team, this software can simply reduce the amount of time taken to complete financial tasks: a small but significant plus. However, for smaller teams it can mean an even greater reduction in costs by reducing the need to outsource financial tasks to an external financial mind.
If you’re running an exclusively online business or selling products via a website, you may also want to get more information about eCommerce accountants. Unlike regular accountants, these online specialists will help you record your sales, reconcile fees, juggle VAT and taxes and save time with your bookkeeping.
5. Reduce employee costs
No matter what your business, it’s important to have a steady and talented group of core employees if you want to grow successfully. To ensure these employees remain happy, they will need a strong wage and possibly some additional perks. However, your overall staffing costs can be reduced by ensuring all smaller or sporadic tasks are outsourced to freelancers.
Another way of reducing costs is to hire multi-talented employees. For example, you can avoid paying individual wages for a bookkeeper, administrator and secretary by hiring a single worker capable of succeeding in all three areas. While you may have to pay a larger wage, it is likely to be smaller than the overall cost of hiring three separate members of staff.
The most important part of saving money is to keep on top of your costs. Regular monitoring of all aspects of your business will help you streamline and redirect spending so you can achieve your goals more rapidly. Modern business technology is also a key part of this process, ensuring you spend your time and your money more wisely.