If you are a small business, we are sure that the words “cost-cutting” will be appealing to you. While the last two years have been mostly centered on keeping business doors open and pivoting business operations, this year has brought in a new strategy. Most businesses globally are now looking toward scaling their business and growing them post-COVID-19. However, this entails cost-cutting strategies.
So, we thought we would take a look at some of the ways that you can cut costs in your company. From small changes that you need to make to company-wide practices. With money being reappropriated into business-building exercises, you should see marked growth in a few months.
- Keep Your Finances in Order
We know that budgets are tight and hiring extra help needs to be seriously considered. However, hiring an efficient and experienced accountant and bookkeeper should be one of the first things that you do for your company. In most cases, getting someone with a financial background can actually end up saving you costs in the long run. But, if this is not a viable solution for you, you can always opt to outsource financial management.
Consider your taxes and lease accounting, as examples. An experienced accountant will understand where to classify certain expenditures, know how to correctly report expenses, and streamline your tax management. In the long run, you will probably find yourself saving even more money by claiming back from taxes, and knowing how to get the most out of your expenses like leases.
- Have the Right Insurance in Place
Again, you might think this is just another expense that you have to fork out. And, let’s face it, insurance is a grudge purchase. But the fact is, if something happens and you don’t have insurance, your company could be crippled. The trick is to find the right broker and the right kind of insurance to match your business needs.
Take a look at workers compensation insurance, for example. No matter what type of business you are in, whether you run a factory, have a store or lease an office with some staff present, this is critical. If an employee is injured or becomes ill as a result of a work-related incident, you will be obligated to compensate that employee. This insurance reduces this risk and reduces the risk to your business. Overall business insurance is also a great idea for your business as it covers every aspect of your operations.
- Digitize Your Marketing Efforts
If you haven’t already started moving your marketing efforts online, now is the chance. Not only can it be cheaper for your brand, you are usually able to reach a wider audience. The ROI of digital marketing is remarkably higher than traditional marketing, and more effective for your brand. Digital marketing may be a bit more resource-intensive, but when you start to understand the processes and know how to do it, it can be easily streamlined.
You will need a functional website, social media accounts, an email tool, a blog and a content creator. The trick to digital marketing is to constantly create educational and entertaining content to post across all of your platforms. You can also write educational blogs and content pieces about your products or services and post them regularly to spread the word about your business.
- Choose a Remote Team
After COVID-19, numerous businesses globally have chosen to conduct more remote operations. With employees being able to log in and work from anywhere in the world, more and more businesses are choosing this as an option. And, the fact is, it comes with multiple benefits. First, overheads such as office space and office furnishings are reduced. If your team is mostly remote, you need less office space and can also look into sharing working space with other companies.
The other benefit to a remote team is that you are not limited to talent in your area. In fact, it is becoming more and more popular to hire consultants and freelancers from the global pool. In this case, you are able to negotiate working hours, remuneration, and project-based fees. So, if you have a certain budget and need a specialist for a particular project, you will more than likely be able to find a remote option in the global pool of talent.
- Focus on Time Management
When was the last time you audited the time spent on tasks vs. the output of work on each task? If you are running a team, especially a team that is paid by the hour, it could be worth your while to put some time management strategies in place. From apps to help your staff focus and concentrate to collaboration and time tracking platforms to monitor the workflow.
Take a look at apps like Monday.com or Trello, for example. These are platforms that allow you to create and monitor and track work across the company. You are also able to track the amount of time spent on each task and project. With this information, you are then able to optimize the workflow and increase productivity.
The Bottom Line
Take a step back and do a deep dive into your company. Where is money being wasted? Where can you cut down or even streamline some processes? Cutting costs is usually about making things more efficient in your business.