Saving does not mean "tightening your belt", it only means "no splashing out": learn to manage your cash flow and run your business wisely.
The end of the year is a perfect time to analyze your business, map out your development strategy, and get rid of the unnecessary spending. Especially if you are aiming at increasing your profits. How to make it though? Here are a few tips you should not underestimate.
cut "paper" spending
Evaluate your monthly spending on paper and office supplies. How often do you refill your printer cartridges and use fax? There is no questioning your business needs — but there is a question about proportion. Why not replace fax by email? It is way more convenient to store data in CRM, than on paper: together with curbed expense, you are also getting less environmental pollution as an additional advantage.
wholesale saves penny
If your company needs regular replenishment of certain resources, make wholesale purchases to get discounts. The crucial point here is accurate estimation in order not to end up having excessive stock, when you no longer need it. Evaluate your spending on a certain item during a year, for instance. Then compare retail and wholesale prices for it — and make your decision.
work in mutually beneficial cooperation
Find partners for cooperative purchases — you don't have to share your business with them. The only common point would consist in cooperative discount purchases from one vendor during one year, for instance.
revise your working area
This tip is only relevant for companies leasing a larger area than they actually use for work, or for the ones where physical presence of the staff is non-obligatory. Here you have a few options to choose from:
- You can shift to remote work and abandon lease all together, or keep a small office for business meetings, negotiations, etc.
- You can take an office at a co-working center. The advantage is getting cleaning, repairs and other maintenance services provided by the co-working center and included in your lease fee. You will get a comfortable all-equipped office with a shared recreation area.
- You can contact other companies leasing offices: one of them might have a good deal right for you.
- You can find a partner for shared lease. Common business interests will make your cooperation a perfect partnership, such as an online shop and a delivery company.
move your business to cloud
Evaluate your spending on the IT equipment and its maintenance and compare it to cloud service rates. It is most probable that cloud service will appear a more advantageous solution. In addition, you will no longer have to provide a special area for the IT staff — cloud service requires no more than Internet connection.
minimize business trips and meetings
No, teleportation has not yet been introduced, but Internet is already there. Replace pricy business travels with online meetings, conferences and discussions on Skype. Video calls will save you time and money.
part-time staff and outsourcing
Some tasks only require involving part-time workers, or freelancers for outsource. Other tasks, demanding no special skills, can be performed by students and interns for lower wages.
revise your phone bills
You can connect with your clients and partners using IP telephony, video calls, and other channels of online interaction. This is not an anti-phone propaganda; consider it rather an appeal to use alternative means of communication, which are, in addition, free of charge.
make the most of no cost MARKETING
You don't have to spend one third of your budget on advertising: this is far from being always justified. Think of the ways to promote your product/service with little or no expense. Here are a few ideas: social networks, collaborative advertising, video channels, etc. Use forums and communities in your business area to attract more potential clients and communicate with them. Here comes the time to employ your CRM. Enable APRO CRM integration with social networks to exchange personal messages with your clients right from the CRM and browse each client's communication history. This will help you soft sell your products or services. Find your ideal niche for the efficient and cost-neutral promotion of your company.
to minimize spending and increase efficiency, you should revise the following:
- Organization of workflow and staff employment.
- Usage of office area: you might need to shrink.
- Paper and stationary spending.
- Wholesale purchases.
- Partner and cooperative purchases.
- Phone bills: switch to low cost channels of communication.
- Business trips frequency: replace them with video calls.
- Data storage: start using cloud.
All these tiny things can make a huge difference to your monthly expenditure bill.