Saving money is the name of the game if you are a business owner. This isn’t just because you may be frugal by nature, this is also because you need as much money on hand as possible to scale your business beyond its current state.
Without money, your business can’t hire new employees, competent developers, and purchase needed software.
Clearly, as a small business, you want to grow your revenue. But that’s not always going to be your state of affairs. In lowly times, the ability to save money will benefit the bottom line. In lucrative times, the ability to save money will mean more spoils and more scalability.
Today, let’s dive into ways that businesses can save money.
Don’t Screw The Product
First and foremost, let’s not get “saving money” confused with “crapping up your product.”
If your idea of saving money is to cheapen your product and hire incompetent workers, that’s the wrong direction. There is no doubt that saving money can be done by cutting corners, that’s fine. But if you attempt to save money by merely stripping your infrastructure of competency and lessening your product’s quality to a non-competitive state, you’re going the wrong way.
So, yeah, let’s not do any of that.
Go Remote (Sometimes)
Remote workers can save companies a lot of money. Often, remote workers aren’t “full-time employees,” rather, they are contractors who don’t receive benefits.
Going remote doesn’t mean screwing employees, it means giving smart, productive people that need to work from home the opportunity to contribute to your business.
Remote workers have come a long way in recent years. Video messengers, project management software, and screen sharing capabilities mean that a remote worker can contribute and be accountable in much the same way office workers are.
There are huge benefits to having workers work from an office, no doubt, but in areas it isn’t needed, consider remote workers.
As a bonus, if your business doesn’t need an office, remote workers could alleviate that cost. It’s something to consider.
Use Cloud Services
Do you really need your own servers?
Do you really need everyone’s computer to have Quickbooks on it?
Cloud services offer cheaper plans and they don’t take up data and space. This lessens hardware costs and reduces technical staff.
Cloud services are available for darn near everything.
Learn To Hire Smart Employees Over Experienced
In SOME positions, you can hire smart employees that are driven to learn new things. Granted, you aren’t going to hire a PHP developer that doesn’t understand code. That wouldn’t be wise.
But for some marketing task roles, you might consider training a smart person up. There are tons of great online courses that will benefit a motivated person.
People with loads of experience command higher salaries.
This is a tricky area, so proceed with caution. You don’t want to hire a lot of people who need immense amounts of training. And experience often brings in faster, more optimal results.
Meetings are time wasters and time is money.
When you tie up employees with meetings, there are lots of tasks that are sitting stagnate.
If you can’t cut down on meetings, make sure you keep them as short and concise and too the point as possible.
Encourage employees to bring in their own water cups and coffee cups. This will help reduce the number of paper cups that your break room burns through. This reduces monthly supply costs.
This is an easy win.
Reduce Employee Turnover
Did you know that training new employees is one of the most costly things business encounter on an annual basis?
Not only does it cost a lot to train a new employee, but that newly trained employee is bound to make costly mistakes in the beginning. Because, that’s what happens.
The more you can keep your current staff happy and not leaving for greener pastures, the more your business can save on an annual basis in training costs.
Learn Organic Marketing
Look, most real businesses have to pay for marketing and paid ads. But it never hurts to examine methods of “viral marketing.”
If you can find ways to garner organic marketing and reduce paid marketing campaigns, you’ll spend much less.
That’s easier said than done, but there are tons of Youtube accounts dedicated to teaching organic marketing.
Saving money for a business means improving scalability and product quality. Whether your business is on the upswing or downswing, learning to part with less cash is an essential skill.
There are lots of easy ways to save money that require little effort. Reducing supply costs and moving to cloud based services are two simple ones.
Saving money by dramatically lowering employee or product quality is likely to backfire.