Guest Blog: Cost Saving In Business

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Cost Saving In Business

Cost saving in business seems one of the hardest things you can do. The age-old mantra “you have to spend money to make money” is true, but there are plenty of different ways you can cut back and still run a successful business.

If you’re a small business owner, it’s easy to fall into the habit of thinking every business related expense is justified. While the majority may seem integral to your business needs, it’s likely that there are areas where spending can be minimised, even if just by a small amount. 

Software

It may be that some of your business objectives and deliverables are dependent on the use of computer software. For example, if you’re a designer or video editor then you may consider a particular piece of software integral to your job – and therefore a necessary expense.

A lot of small businesses may not be making the most of what their software has to offer. This means that you may be paying for applications and features that simply aren’t needed. If you’re using paid software sporadically, it’s worth considering the free alternatives available that may produce the same results.

For example;

  • Productivity –Effective time management in business is undoubtedly very important and there is a range of free time management software  available that can save money spent on paid versions. If you don’t need all the features offered by paid software, these may provide a suitable alternative

  • Word Processing – If you frequently share written documents with clients, suppliers and business partners then a universally compatible Word Processing software is definitely the best way to go. This will save you many headaches in the long run. You can always start with a free trial to spread your costs. You can also utilise the extensive resources available to help you get the most out of the software you have. If you don’t need a particularly powerful word processing suite, there are many excellent alternatives that offer a similarly high level of functionality.   

  • CRM Software – CRM software can be of great value to a business and many of these packages are available online, free of charge. You may also find CRM software included in a package that you already have  is packed with great features, this can help you manage sales and maximise opportunities

Utilising software to carry out the day-to-day activities of your business is vital. Find out if it’s possible to achieve the same outcomes and keep costs down. 

Streamline Your Processes

By doing so, you’re much more likely to be saving money in the long run. This will require some analysis, but taking a look through your business practices and refining them can greatly improve efficiency and productivity.

Go Paperless – Many offices these days are completely paperless. If you analyse your paper use and conclude that it’s unnecessary, consider ditching the paper to reduce costs and gain back some time spent on unnecessary filing

  • Banking – There’s a range of different bank accounts available to businesses, not all of which will be suited to your needs. Look for business accounts that are simple to use and easy to manage, to avoid spending unnecessary time and money managing your business finances 

Mismanaged time can reduce productivity and hurt your business outcomes. By streamlining your processes you are able to make the use of time in your business much more effective overall.

Think Practically

It’s tempting to get a little bit nebulous when thinking about cost efficiency and how best to enhance it in business. However, you may find you’re overlooking simple and practical means of keeping spending down.

Some simple tips to reduce costs in business include:

  • Recycled Printer Cartridges – If your business is dependent on regular printing, recycled print cartridges are a great way to go. New cartridges are expensive, and therefore a great target for cost cutting.

  • Location – If you’re a sole trader and the only person in your company, then perhaps using an office is a big cost you could remove by working from home. You can meet clients in a neutral venue if you don’t want them coming to your house. Removing or downgrading expensive office space is a good way to save a substantial amount of money.

When all is said and done, there’s a balance to be struck. It’s necessary to cut spending where it’s not practical and invest where it is practical. Sometimes it helps to take a step back and assess things in a simple and logical way. You’d be surprised how many little things you can do to cut costs in your business.

Written by Jeff Nevil