When running a business, there are many things to keep a track of, and one of the most important, as well as one that can pose a considerable challenge, is the issue of keeping cash afloat. Whether it be taxes, staff, rent, operating costs, or all the other little expenditures, the costs can really add up, and it can be difficult to try and save money without compromising on the service provided to customers, and overall quality.
This may be even more so the case if you are running a small business, or are a startup when you perhaps do not have a large amount of income that can be stashed away.
However, don’t fret! There are many ways you can save money as a business. Many, if not most entrepreneurs tend to work on a small budget and operate at a minimal cost. So how do they do it? We’ve put together some money saving tips that can help business owners from any sector or industry to save money, lower their overheads and be able to run without compromising their customer service, and therefore enables them to reach their target market.
Go for social media advertising
With print advertising on the decline, and as we as consumers become increasingly reliant upon our phones, it may be worth veering away from traditional advertising methods (this includes digital advertising, which can end up a costly affair) and look at social media advertising. Not only will such tactics reach a wider audience, but it is also far more cost-effective. There are numerous ways you could engage in social media advertising, dependent upon the nature of your business:
- Create a Facebook page for your company to boost traffic, and make sure that you post relevant content on a regular basis (if you can, add content every day). Respond quickly to any customer queries you receive through Facebook messenger, which is being used increasingly as a means of contacting businesses and try to engage consumers with content.
- Twitter can also be a useful social media advertising tool, many of the same rules apply to Twitter as they do Facebook: post regularly, make sure content is interesting and relevant.
- Instagram or Snapchat an excellent way to reach out to customers, with the option to post Instagram stories and videos to regular update people on news.
Could you save money on your marketing strategy? We think you might. You could try ‘piggybacking’ which refers to including advertising material through other mailings or adding newsletters and coupons with the items inside the package that the customer has bought from your company. Not only does this save money on delivery costs but also advertising.
Have you ever considered sharing advertising costs with other businesses? It may be worth considering. Whilst on the face of it you may think such an idea seems counterintuitive, sharing advertising fees means you both save money, and you could potentially save even more if you exchange suppliers and mailing lists if you are in similar industries.
Do your own PR?
As we sure you are aware, hiring a PR firm can end up being extremely expensive. However, if you feel that your company needs press, you may feel stuck in a catch 22 over whether to hire a firm or not. Well, have you ever thought about becoming your own PR? Get researching on everything you could need to know about public relations for your industry and speak with total passion about your business.
In addition, what’s stopping you from picking up the phone and getting in touch with your local or national newspapers or media outlets? Going straight to the source can yield results, and if you do it yourself you will save on the costs of a public relations company doing it for you. In terms of receiving media coverage for your business, it is often the case of pursuing with a bit of persistence.
Do you really need that meeting?
This is an incredibly easy way to be more cost-efficient. Evaluate how important certain meetings are in relation to the costs and benefits to your business. The time might be better spent on other tasks.
Cloud computing could be the way forward
The installation, upgrade, hardware and support costs involved in setting up office software can end up being a small fortune. Why not consider swapping for cloud-based software for some tasks?
Buy used furniture and office equipment
Evaluate just how important it is that you have those top-of-the range chairs and computing desks. You could buy second-hand furniture or office equipment that functions just as well.
Hiring an apprentice can present itself as a great business opportunity for businesses, and vice versa. You may receive tax breaks, and there exist government schemes funding over 90% of costs towards their training.
Excellent customer service is key
It goes without saying that keeping your customers happy is one of the top ways to save money. After all, if you keep existent customers satisfied, the likelihood they will make additional purchases from your business should remain high, and this can have a domino effect on sales if they then recommend you to their friends and family for your services.
As a result, it is essential that you employ and train the right people who will be dedicated enough to go that extra mile for customers. Customer loyalty can help your business grow exponentially.
Sharing office space
There may be some risks involved in deciding to share a lease with another company, but there could also be many advantages outweigh them. If you don’t need much space, it can be a viable option, or if you have a close business connection.
Using sites such as Upwork to complete annoying but necessary tasks that you need completed but do not have the time or money to hire a new employee can be an excellent way to cut overall costs and delegate. List the job you need completed and name your price and the time you want to be spent on it, and receive the work by an already experienced professional in your field shortly after. Doesn’t sound too bad does it?
For more money-saving and personal finance tips, read our blog.