When running a business, your goal should always be to increase your income while reducing your outgoing costs — this is business 101. If you’re a business owner, you’ve probably spent a lot of time thinking about ways to boost your income, and that’s great, but it’s just half of the issue. Try these techniques to cut back on your costs and increase your profit margins further.
Spend Less on Advertising
Advertising is essential for gaining new clients. You can’t build a brand without it, but the downside to traditional advertising is its cost. Paid advertisements can be expensive. The good news is that you can cut down on your advertising spending by using low-cost alternatives.
If you have an extensive mailing list, you can use email campaigns to encourage previous users of your product to do so again. Offer discounts or vouchers to drive sales.
Another great option is to use social media to build up an online following. You can then create interesting social content to engage your audience, marketing more organically and without spending a penny.
When you do use paid ads, make sure you use them effectively. Think about who your customers are and what type of ads they respond to. Don’t waste money advertising randomly. Use targeted marketing to maximize your results and save money in the long run.
Make Your Office Paperless
This is a tiny change to make but one that can really make a difference over time: Get rid of any printing or copying. It’s the 21st century, and you can do anything you want on a screen.
Cutting out printing costs such as paper and ink will lead to small savings that add up over the course of a year. It will also benefit the environment, which is no bad thing—and you can highlight your new green policy to promote your business further.
Tweak Your Supply Chain
When you started your business, you probably used suppliers and facilities that offered the cheapest rates so that you could save money. It seemed like a good option at the time, and it probably was.
Later down the line, though, you might be paying for hidden costs relating to inefficient transport and inventory storage. By optimizing your supply chain, you could save money.
Supply Velocity offers supply chain network optimization to help you find the balance between a low-cost supply chain and one that works as effectively as possible. It’s a great way to save money and boost your efficiency.
As your business grows and expands, there will be times when you need to bring in extra hands to get a job done. A way to save money here is to hire freelancers instead of permanent employees.
Hiring freelancers through online platforms like Dormzi means that you only need to pay for the work that needs doing. You’ll avoid paying out for vacation days, and you don’t need to offer expensive benefits. When you find a freelancer you like, you can use them again in the future without having to add them to the payroll full time.
Reducing business costs at all stages and in all areas of a company can increase profit margins. Making small changes can add up to big savings over the course of a year, so try these methods and see how much you save.