21 Smart Ways to cut costs – As an entrepreneur, keeping costs under control is an important business goal.
In business, a dollar saved is equal to a dollar earned. Why not focus on increasing your business cash flow by cutting costs?
Here I share 21 tips to cut costs in your home and business. Some of them are simple to implement, but the positive impact on your bottom line can be immense.
- Renegotiate your office supplies deals with vendors or price match with large suppliers such as Amazon, Kmart
- Optimize your production real estate – consider leasing any unused area
- Reduce production costs – see if any metal, paper or cardboard leftovers can be sold and recycle the balance
- Save money by shopping for competitive quotes for your professional and personal insurance, then ask your current insurance company to match it
- Review your existing bank accounts to see if you can consolidate them to save money
- Planning to expand your business? Do a complete cost-benefit analysis to see how future cash flows match up if you take on too much debt. Do keep in mind that too much debt can affect your company rating, interest rates, liquidity position, and dilute your stake.
- Go digital – develop an email marketing plan to get in the inbox of prospective clients. Target developing a referral business to reduce your marketing costs as digital can be way cheaper than traditional marketing methods.
- Make networking a key component of your marketing plan. Create a personal brand to get more referrals and direct clients. Reduce the share of paid advertising gradually.
- Use social media effectively – Make use of time-saving social media scheduling tools like Buffer & Hootsuite to manage your Twitter, Facebook, Instagram, Linkedin accounts. Spend 10 minutes a week and schedule posts days or even weeks in advance. Stop paying to an agency to do it.
- Minimize time wasters – Make a daily to-do list. Use apps like Rescue time and Focus booster to stay on track and focus more.
- Do better time management – Review and redesign your workflow to see if you can do an activity in a better or faster way. Schedule all phone calls to a given time slot in a day. Similarly, check your email and social media at specific times in the day.
- Manage your notifications – Apps and tools are highly useful, but they can be time wasters too. Allow notifications only from useful apps and consider disabling the notifications from the ones that are not critical to your day.
- Pay only for the work done- Monitor and pay only for the billable hours of your employees with apps such as Toggl and Paymo.
- Free up your time to take on better-paying clients. Consider hiring a virtual assistant online to help you with daily administrative or routine tasks using online marketplaces such as Fiverr and Upwork.
- Increase business productivity by scheduling daily and weekly work for yourself and the team. If you have any free time, network to get more clients
- Minimize meetings or try to keep them online. Keep a schedule for it and wrap it up promptly. Taking notes earlier and being prepared can help.
- Use digital technology wherever you can to cut costs. Video conferencing, meetings, scheduling apps, and hiring talent online are just a few of the ideas you can implement.
- Use Google docs, spreadsheets for your team rather than getting Microsoft Office subscriptions. It is highly user-friendly, suitable for collaboration and helps you cut annual costs of about $100 per annum per user.
- Use free cloud data storage from Google drive to store your data online. Each user gets 15GB from Google, so use it effectively and save the cost of buying an expensive hard drive or other external storage devices.
- Consider subcontracting of smaller and repetitive tasks. It can help you save money, time, and be more productive. By taking on more clients, you can get more revenue into your company.
- Develop a laser focus on the quality of work. Better quality of work will bring in repeat clients, more referrals, and make your brand stronger, allowing you to charge higher prices.
Enhanced business profitability and bigger savings are just a few of the benefits that you can see almost immediately. Want to contribute your cost-saving ideas? Comment below to share it with everyone and keep saving!
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