The business world is highly competitive, and to maximize profits and growth, it makes sense to save money wherever possible. While it is important not to cut corners, especially in regards to providing services to customers, efficient money management is essential for small businesses or new start-ups.
With this in mind, here are five money saving tips to make your business more cost efficient.
Successful advertising can bring in a company’s next customer or client and is central to business marketing strategies. Furthermore, when done correctly, it can be incredibly cost-effective.
Small-scale, targeted advertising campaigns can be a great way to save money, while still ensuring they promote the business. Generalized campaigns may reach a wider audience, but many businesses will have an ideal target audience that should be focused upon.
Networking events can help promote the brand and can allow advertising of the business in person. There are a variety across America, and in other countries such as the UK.
Hosting a blog or social media account allows a business to connect with a specific audience, and can cost practically nothing to implement. They also allow for personalized communications with potential customers and good public relations.
Regularly Review Costs
A company’s profit margins are strongly dictated by its outgoing costs, and it is good practice to review these costs periodically. There may be scope to switch to cheaper alternatives in a number of areas.
Reviewing maintenance costs, with a focus on the frequency these services take place, can lead to big savings. Office cleaning by professionals can be reduced to a weekly occurrence, with cleanliness encouraged through employee recycling and waste schemes.
Shipping can be a costly necessity for many businesses, and shipping prices often fluctuate between providers. Therefore it makes sense to review shipping providers often and draw comparisons between what these different shipping companies provide. There are a variety of online resources that allow you to compare providers and it is a good idea for any business trying to keep costs low.
Use Graduates and Interns
For small businesses, hiring graduates and making use of interns is highly recommended.
Restricting the employee selection process to focus on candidate experience can be unnecessarily costly, as experienced staff typically anticipate a higher salary. Recent graduates are an alternative option that should not be overlooked.
What graduates may lack in experience, they will typically make up for in their willingness to learn, and the speed at which they do so. Many will also have experience from extra-curricular activities and may have completed work experience in the industry beforehand.
In addition, interns are an affordable resource that can increase a company’s output, while promoting the development of new staff. Using interns allows a business to train potential future employees, also creating a relationship between the company and a talent pool, such as a university or college.
Take Advantage of Pre-Owned Items
An environmentally-friendly company image is strengthened by making use of used or pre-owned items, and recycling old products into new ones. This can be done with office equipment and materials, as well as electrical items, such as computers.
Purchasing and using refurbished computers is an affordable yet quality assured option that should be considered by all businesses. Businesses can save money, whilst still providing access to the best equipment and technologies. Buying a certified refurbished MacBook Pro 15-inch is a much cheaper way of getting a premium Apple laptop, costing just over $700 (a saving of $1,460 or 67%) compared to buying brand new. But, for the lower price, employees will still have access to the latest Intel processors needed to handle power-intensive work, the Retina display which is ideal for designers and other creatives, and a thin design that makes the laptop so portable (ideal for commuting).
Refurbished retailers will grade each computer from A through to C, making it easy to assess the rebuild and aesthetic quality of each machine. Refurbished grade A is the best quality, followed by grades B and C. Each grade offers a fully functioning device, with differences between each primarily being cosmetic. Different grades come at different pricing points, offering flexible options for businesses with limited budgets.
Buying refurbished isn’t the only way that a modern business can become more environmentally friendly, though. There is a variety of eco-friendly business practices, many of which will help you save money and become even more successful with consumers.
Sustainable materials and equipment can save great deals of money in the long run, increasing energy efficiency, and cutting utility costs. Energy savings should not be overlooked, offering substantial reductions on annual bills.
Furthermore, recent scientific studies have shown that consumers place a significant amount of value in environmentally friendly businesses and products. Green marketing is a concept in which greener companies are more appealing to potential customers.
Subsequent studies have also shown that consumers are willing to spend more on products or services provided by a company that are both environmentally friendly and ethically sound. This should mark remaining environmentally friendly as a priority for all businesses, regardless of size.
All in all, it is important for any business, regardless of size, to save money where possible. Doing so maximizes profits and allows you to invest in expansion plans, product development, and providing additional services to customers.
There are a plethora of ways to do this, including being smart with who the business employs, and how running costs are reviewed. It is also a good idea to investigate using second-hand equipment, such as refurbished computers.
In an industry driven by innovation and forward thinking, remaining clever with costs will ensure the business remains competitive and succeeds.