Many companies run into financial difficulties at some point. In theory, the solution is always clear and simple – start saving. But how?
Here, we present you with 10 pieces of practical advice on how to reduce expenses without losing your position in the market, and successfully keep your business.
1. Give up traditional advertising
Expensive advertising on traditional media should be replaced with online marketing. This will not only help reduce expenses but will also increase your ability to reach the target audience.
2. Find sponsors for your events
Various festivals, seminars and similar kinds of events increase your client base but require quite a lot of funds. Find a company that would be willing to either provide a certain service at the event or sponsor it financially in exchange for advertising.
3. Give up full-time staff
No company can function without it, but it costs the employer a lot, from renting an office to health insurance. Seek opportunities to hire freelance workers under individual work contracts.
4. Negotiate with suppliers
Even if the supplier of goods or services has set the final price, it can still be adjusted. Don’t be afraid to negotiate – partners will often find it beneficial to reduce their price, as opposed to completely losing a client.
5. Don’t limit yourself to the money you’ve got
Even if your company’s account has emptied, don’t give up something that is vitally important to the survival of your business. One possible solution is barter exchange. Propose paying back for their goods or services by providing your own work and you won’t have to spend a single cent.
6. Limit trips and meetings
Work trips and internships are expensive, but so are meetings with clients and even company’s inside meetings. Carefully consider how many people are worth sending on a certain trip, because it will be you who pays for all of their travel expenses. Furthermore, meetings with clients or board meetings should only be attended by those, who really need to be there, because otherwise, they’ll be wasting time that could be spent working and making a profit.
7. Seek volunteers
It can be difficult to find people willing to work for free but try to draw up an offer that would attract attention and guarantee valuable experience. You can offer an internship, volunteer work for youths or seek education institutions that would be willing to collaborate.
8. Review all expenses
Usually, companies only start looking for ways to save when they find themselves in a particularly difficult financial state. Expenses are then cut radically which causes additional problems. Review your expenses one more time and analyse how much you’re paying, and for what. You will definitely find something you can give up.
9. Buy wholesale
Try to buy things like stationery in a focused manner and as cheaply as possible. Avoid unplanned purchases in random places. Look for the needed products in wholesale outlets or order online.
10. Reward your employees
Although spending in order to save might seem irrational, sometimes it can be a great investment. Buy lunch for your client or give a bonus to your best employee. That way, you will invest in good relations, while a motivated worker brings more profit to the company.