13 smart methods of saving money in business
Building companies is a great professional step ahead and not an easy feat to achieve. Sometimes it works from the beginning and businesses enjoy their success and economic growth. Yet, some companies face economic problems. Either they overestimated their economic capacity or came across a difficult period of financial recession. With that in mind, the following list aims to propose feasible methods of saving money to keep any company afloat through challenging times.
Outsource, don’t overload
It’s highly possible that a small business may not be able to sustain a workforce that consists of many employees. Of course, there are things that a company should handle. There are also tasks that companies can definitely outsource. Delegation is a valid way to save resources and time. Business teams can put the spare money and time into tasks of higher importance. Some of the most outsourceable operations are customer support services and creative work (content writing, web design, and marketing components). Businesses should also contract out tasks they don’t know how to administer or do not like. They can also outsource accounting and legal services since they tend to be expensive and must be done properly.
Digital marketing potentially is an expensive sport for companies. Especially if they create campaigns through Google and Facebook ads. Of course, they are essential for the exposure of a company to the public. Though, if the capital and revenue are not enough to cover expensive marketing costs, then different advertising strategies should be found and implemented. For example, uploading interesting content on the company’s website/blog, writing articles for popular platforms, being active in online communities, and marketing the company using more traditional advertising ways are alternative methods of saving money. Leaflets, stickers, and business cards are also on the table. So, it’s up to the company owner and managers to choose the ones that work best.
Optimize the workflow
Since technology is moving forward fast, small companies can significantly benefit from automating their workflow. From social media moderation and communication to digital marketing and email organization, automation can take so much off their hands. There are platforms that handle many features that a company needs. Therefore, the incorporation of automation in the methods of saving money can diminish repetitive tasks and save valuable time. Then, the employees will have more time to focus on performing better and increasing the current revenue.
Companies benefit financially from the wave of interns that enter the job market every year. They are part of a cost-effective solution for business owners that try to crew their ships while making ends meet.
Truth be told, internships constitute a new form of slavery. In reality, students are exploited to the maximum and are paid much less than they deserve. They work hard, they are responsible for a variety of tasks and most of the time do all the heavy peripheral jobs. Still, companies should hire interns and treat them like professionals. Average salaries for students sound logical, but internships without any monetary compensation seem inhumane.
Good working relationships with interns are integral to helping companies stand up on their feet. Who knows, the best interns could also be exemplary employees for the business they did their internship in the near future.
Look into sponsorships
Events are business occasions where existing customers can learn what’s new about the companies they work with. It’s also an opportunity to attract prospective clients. To organize or be part of business fairs, sponsors are needed to pay for the expenses related to such an instance. In return, the sponsors will be advertised at the event and gain exposure. Most of the time, if the sponsor and the sponsored companies belong in the same industry, then the collaboration can be even more fruitful in the long run.
The art of service exchange
The exchange of goods and services is an ancient trading practice around the world. Truth is that it’s not the most typical practice anymore. However, it’s one that can really help struggling new companies or businesses in crisis. For example, if a company possesses design expertise, and another one has years of experience in marketing campaigns, then they can exchange services.
Then, no money is involved, and both parties get what they need at the time. Depending on the needs of a company, an exchange of services is a truly viable solution. Of course, as long as the right professionals to trade with are found.
Businesses on a cloud
Small companies should leave behind their attachment to hardware. It is expensive, unreliable, and belongs to the physical world. Therefore, it’s only natural that since technology gave birth to cloud-based services, the business world should embrace them and utilize them in the best way possible.
Hosting data on a cloud is cheaper and more secure, always compared to storing them in any hi-tech piece of hardware. On top of this, yearly subscriptions to cloud platforms can save considerable amounts of money since they come with discounts. Therefore, the tech method of saving money through buying cloud space can make a vast difference practically and economically in any business.
Virtual solutions, tangible results
The most useful modern invention that helps companies survive difficult times is the solution of telecommuting. The notion of using all the available digital channels of communication without actually commuting is a perfect way out when a company does not have the financial capacity to host all of its employees.
Hence, remote workers or virtual teams come into the picture. Calls over the internet or conference calls, video calls, emailing, and instant messaging work perfectly in professional contexts. Therefore, the expense of office space, utilities, and equipment is a burden that companies can avoid or minimize. The capital that is left behind can be channeled to higher salaries, investments, or strategic plans for the future.
Go for intellect, not the experience
When small businesses plan on growing their workforce, a practical dilemma appears. Employers and HR managers think to themselves “Should I go for experience, intellect or both?” In today’s job market, some professionals have a lot of experience in their respective fields, others have passion and intellect, and some others have both.
In the case that companies want to make new hires but do not have substantial capital, then the answer is quite easy. They should choose professionals that are eager to gain experience but have extensive knowledge and a hard-working attitude. They will be good at their jobs, keep evolving, and at the same time, they won’t cost a fortune.
Mold the company’s schedule
Working timetables are not the same anymore since the business world starts to understand that a change is coming. Reducing the weekly working hours does not necessarily lessen the quality or amount of work. Many professionals work 4 days a week or 6 hours a day. Both cases save the company’s money and the employees’ time since they can allocate it to other projects or however else they prefer. Decreased utilities and operational costs, as well as lowered salaries, play an immense role in improving the economic state of any company.
At the same time, time-tracking software, like Elorus, can greatly help the teams monitor their hours worked, the costs and expenses, giving the manager an overall view of the projects. This way, you can also understand how the work schedule should be adjusted to manage effectively the workload of your company. Steadily filling the timesheets of the tasks to be completed as well as setting the employee hourly cost can greatly save a company’s time and money.
Monitor the maintenance costs
Companies that need to keep their finances under control should never omit to oversee their maintenance costs. For example, employees can help by taking good care of their offices and common areas. Less garbage means less demand for daily clean-up. Then, cleaning services don’t have to come every day but once or twice a week.
The right maintenance of office equipment can also contribute to the company’s money-saving efforts. Refill the ink cartridges, buy energy-friendly devices, and stop overusing them without a good reason. Remember that one small change may not make a massive difference in the maintenance budget. But, the sum of all the possible changes will.
Work with open source programs
Ιf businesses want to save a considerable amount of money; then they don’t have to buy the full package of every existing software. They have to specify the ones their teams actually have to use and maybe buy them. However, if this is not an option, then the businesses should be on the lookout to find the open-source software programs that can cover their working needs but cost much less than the ones they’ve been subscribed to in the past. Some programs may also have trial periods and free packages with fewer features, so it’s up to them to make the right choice.
Cross-train the existing teams
This point applies to a bit larger companies that have more than one team. Depending on the different professionals working in each team, most of them could cross-train in new skills that they could apply to the projects they’re working on. This way, they will be more flexible, engaged, and creative when working on different tasks. Also, they won’t feel bored by performing the same repetitive tasks all the time.
New aces up their sleeves offer new perspectives, and when successfully incorporated in their skillset can work to the company’s benefit. The more employees keep on evolving, the more a company’s responsiveness to problem-solving and innovation will increase.
In a nutshell, all the above methods of saving money for businesses can work miracles. Of course, not in a day, but the results of the sum of the company’s efforts will reveal themselves at the right moment. Be patient, make all the right invoicing and billing moves, have full control of all the economic data, and hard labor will pay off.