It’s only natural to assume that making significant investments is the only way to experience business growth. After all, you have to spend money to make money, right?
The truth is that this adage is not necessarily accurate in all situations. Business owners can achieve significant growth – or at least maintain their current profitability – while simultaneously reducing their costs. If you’re curious about how that’s achievable, read on to discover five strategies for cutting back without halting your growth.
Introduce Remote Working
There are many costs associated with running a business, including building leases, utilities, and insurance. However, you could say goodbye to those costs permanently by taking advantage of one of the best virtual offices in your area and allowing your staff to work remotely.
Virtual offices allow businesses to enjoy the benefits of a physical business premises – such as reception services, a business address, and mail forwarding – without actually working from one. Instead, employees can work from the comfort of their own homes, and business owners can reduce their costs and reap the rewards of increased productivity.
Invest in Automation Software
Business-related tasks can be repetitive, monotonous, time-consuming, and expensive. While necessary to perform, they sometimes limit business growth due to the significant human resources they require.
That’s where automation software comes in. From data entry to accounts payable automation, if your business has repetitive tasks that could be performed much faster with software, there’s every reason to consider it. You should then be able to redirect your resources, saving yourself time, money, and stress.
Scale Down During Seasonal Lulls
Many businesses experience seasonal lulls. For example, winter can limit how many people are willing to venture out of their homes, even if online shopping sees a sharp increase during this time.
If you know you’re not as busy during one time of the year compared to another, consider scaling down your services to save money. You could use the money you save during that quieter period to fund the busier seasons. Now might be the right time to consider your stock and staffing costs.
Change Advertising Avenues
Advertising is crucial for businesses to ensure their products and services are in the public eye. However, some advertising methods are more lucrative and cost-effective than others. When you wish to save money but not lose momentum, consider changing how you advertise.
For example, rather than spending thousands of dollars on newspaper ads you can’t track, put that money – or some of it – into digital marketing. Paid online ads are generally much more affordable and completely customizable to suit your target market.
Perform Expense Audits
There’s generally no way to avoid overheads as a business owner. Even if your employees work from home, you typically still need to pay for insurance, marketing, and basic administrative costs.
However, that’s not to say that you can’t reduce your overheads to a much more reasonable level. Go through your list of yearly expenses and see where you could cut costs. For example, you might save money by switching power companies, negotiating with suppliers, or changing your insurance and software packages.
Cutting costs can traditionally mean cutting quality and services, but that doesn’t have to be the case. Instead, go through your expenses with a fine-tooth comb, consider remote work, and change your advertising methods. You’ll be surprised by how much money you can save while maintaining the level of service your customers have come to expect.