Jarrad Lawford 29 April - 6 min read
There are two ways to build a profitable business, increase sales or decrease costs. Thanks to Covid-19 increasing sales isn’t that easy for many small businesses right now, instead try focusing on what you can control. Look for ways you can cut costs, and keep your income higher than your expenses – without reducing customer experience or having to layoff staff.
We’ve pulled together some real cost savings tips gathered from years helping Australian businesses.
Our first tip is a pretty obvious one, but you can easily save thousands of dollars annually on office stationery, supplies, and equipment if you buy at the right time and from appropriate suppliers. Everything from pens, desks, hardware, software, and electronics can be purchased at a discount if you keep an eye out for sales and plan ahead.
Avoid buying these items during peak periods around Christmas or the start of the financial year when prices might be inflated. Also, instead of ordering items individually as you run out, try to order in bulk to take advantage of discounted prices and delivery.
Taking control of marketing your business can save you a lot of cash. If you’re unsure where to start, try looking up competitors to get a feel of the type of content they are producing.
Facebook, LinkedIn, Twitter, Instagram, and Youtube are the most common platforms for businesses to grow their digital footprint, even better, you can get started for free. Once you have set up a business page, experiment with post types, frequency, and style until you find something that works for your audience. If a post you have created starts to get a lot of traction, consider boosting it and targeting specific audiences.
If you want to experiment with different apps try download.com, which enables free trial and limited versions of full apps, products, and software.
This is one of the easiest tips for saving money, yet one that businesses often forget. Turning off lights, switches, or appliances when they aren’t being used can save thousands of dollars annually.
In fact, frequently leaving just one computer on overnight can add more than $200 a year in unnecessary energy consumption. Now imagine having dozens or potentially hundreds of computers within your business … your energy bill could easily spiral out of control.
Additionally, appliances that are plugged into a power supply, but turned off can account for up to 75% of electricity bills. One easy way to avoid this issue is to plug your appliances into easily accessible adapters or power strips and turn them off when you finish work.
As an added bonus, turning off all TV’s, computers, laptops or lights also protects them from damage during power surges and can save as much as 10 per cent off your annual electricity costs. Renewable energy sources such as solar panels can also save you a lot of money and could be worth exploring.
You may be surprised how many subscription services you’re paying for but no longer using. Get into the habit of reviewing your credit card statements as often as possible so you spot un-budgeted charges and can unsubscribe from software and services you no longer need.
Yes, brand new equipment is more reliable and looks nice, but you can often save a lot of money buying older and used equipment. Check out auctions, social media marketplaces, and second-hand shops to see if you can score a bargain.
If you need a new computer for work, consider certified refurbished options from Apple or Microsoft. You can often pick up a cheaper version for a fraction of the price and most providers offer at least a one-year warranty.
A smart way to cut your annual expenses is to keep your full-time staff to a minimum and outsource as much work as possible to independent contractors for tasks that are one-off or seasonal.
Not only does your business save money because you can negotiate lower rates with consultants, but the task is done faster with more expertise and your staff can stay focused on their assigned workload. Consider platforms like Fiverr and AirTasker.
Consolidating your business data into one place is also a great way to save money and time. Taking your business digital reduces human error and enables you to view your whole business at a glance.
It is critical to conduct thorough research before making a decision on the kind of software you need to run your business. There are a lot of software options out there, but we recommend choosing one that manages all of your business needs in one spot.
Below are some of the software features that we offer at Spenda that could help your business run at peak efficiency;
→ SpendaPOSOur simple and fast point of sale system that integrates into your financials (Xero, Quickbooks, MYOB) in seconds and is accessible anywhere, anytime.
→ SpendaMarketYour complete business-to-business management software. Controlling sales and orders 24/7 with a simple, personalised user-experience and fast financial integration.
→ SpendaCollectOur cheap and fast payment collection system that provides suppliers and retailers a simple, digital way to manage their accounts receivable.
We hope these tips can help you improve your bottom line!
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