SMBs don’t always have big budgets, but that doesn’t mean they have to struggle. There are so many ways to reduce your operating costs, supporting your company as it grows. Here are a few ways that you can reduce your expenses over time.
1 . Boost Energy Efficiency
Boosting your energy efficiency is an excellent way to lower your company’s operating costs. When you run a more energy-efficient company you’ll protect the planet and improve your business reputation. There are plenty of ways that you can boost your energy efficiency within your company such as:
- Upgrade the insulation in your roofing and walls.
- Use a renewable energy provider.
- Ensure that your appliances carry an energy star rating.
- Use energy-efficient bulbs for your lighting.
- Implement policies to switch off devices when not in use.
2. Buy Second Hand Equipment
Purchasing second-hand equipment can save you plenty. You might consider using second-hand furniture, office decor items, or second-hand computers. MacBook Pros are expensive to buy new, yet there are plenty of second-hand outlets where you can snap up a good deal. Another way you can save on your hardware costs is by making repairs yourself. If your computer starts running slowly, check out some simple troubleshooting guidelines, there could be a simple fix.
3. Negotiate With Suppliers
Negotiating with your suppliers can help you to make a few savings. If you’re unable to get a better deal you might want to shop around. There’s every chance you’ll find a supplier offering cheaper prices. When you’re searching for a supplier, try using a Supplier Information Management System. These systems allow you to search for suppliers, using criteria such as rating, price, location, and so on.
4. Automate Your Processes
Businesses can reduce operating costs by automating their processes. For instance, using chatbots on your site means you won’t need to hire as many customer service staff. There are plenty of other ways that you can save time and money with automation:
- Use accounting software to automate your financial processes.
- Use AI to streamline your recruitment procedures.
- Email marketing is useful to run cost-effective campaigns.
5. Inexpensive Marketing Strategies
Marketing is essential, yet it doesn’t have to be expensive. If you’re looking for a way to save money, there are plenty of inexpensive marketing strategies that you can try:
- Use social media to promote your brand and target the right users.
- Work with micro-influencers for a low fee.
- Write your own SEO-optimized content.
- User-generated content is another great way to save.
- Take advantage of free online marketing tools.
- Listen to the leading marketing podcasts to upskill.
6. Use Outsourcing To Your Advantage
Businesses have many different outsourcing options, whether it’s managed IT services, accounting, content, or graphic design. Companies can lower expenses by outsourcing, as opposed to hiring full-time in-house staff. Outsourcing can help businesses to save money in several ways:
- Companies won’t need to rent out as much space for new staff.
- Businesses can limit their spending on new software and hardware.
- Less spent on staff training, and benefit programs, etc.
- Managed services and freelancers are often less expensive than hiring in-house staff.
- Projects can be executed on a one-time basis, using a pay-as-you-go model.
7. Improve Your Time Management
Without great time management, businesses will waste both time and money. Companies should consider using time management software, to maintain productivity levels. Apps like RescueTime and Toggl are both useful time management programs for businesses. These tools have various features to boost productivity levels, from scheduling tools to productivity charts, and website blocking.There are several other ways that businesses can improve time management including:
- Get rid of unnecessary meetings.
- Take advantage of project management tools.
- Create a task hierarchy to stay organised.
- Ask staff for feedback, (their viewpoints may be helpful to improve time management).
8. Reduce Travel Expenses
Travel costs can be incredibly expensive, it’s worth limiting travel to those occasions that are essential. By embracing concepts like remote work and virtual meetings, businesses can reduce the need to travel. Looking to put on a business event? You can drastically cut the costs by hosting your event online. Over the last year or so the popularity of online events has soared. Naturally, it’s harder to engage your audience, so businesses need to get creative. Before you arrange an in-person meeting or event, consider if it’s necessary and what value it will bring.
9. Free Business Resources
Lowering your costs is all about getting freebies, here are so many free business tools that can support your operations. For some great ideas to get you started, try these suggestions:
For Project Management: Click Up is an excellent free project management tool. Using this software you can choose from various task views, including mind maps, and Gantt charts. You can also take advantage of chat pages, document view, and embed view. It’s a fantastic free tool to improve your PM.
For SEO: Using the free version of SEM Rush you can perform 10 searches each day using the keyword and domain database. You’ll have access to the ‘Keyword Magic Tool’. The free version also lets you crawl 100 website pages, with the site auditing tool. To support your SEO needs, SEMRush is a wonderful tool.
For Accounting: Wave is a great accounting tool for small companies, freelancers, and sole proprietors. Using the Wave features it’s simple to keep your finances organized. It’s easy to connect Wave to various bank accounts, for the purposes of expense tracking. With useful tools like these you’ll boost productivity levels and improve your ROI.
Small companies have plenty of options when it comes to lowering their operating costs. With ideas like these, you’ll be able to make some smart savings and raise your productivity levels. There are so many free tools that can support your operations, and outsourcing will allow you to keep your employee costs low. Don’t forget to use budgeting and forecasting methods to review your finances over time.