Cutting costs doesn’t have to compromise the quality of your goods or services. Here are 5 effecting ways to reduce unnecessary spending, and help your business save some money.
Re-think your marketing
There are many ways to market your business effectively, even on a limited budget. If you’re marketing online, a good way to save money while still reaching your target audience is by using organic reach on social media, as well as updating your Search Engine Optimisation (SEO) so that you appear higher up on search results. For more info on this, check out the free Digital Marketing with Google course and our article on Social Media Marketing. As for offline marketing, you can harness the power of word-of-mouth marketing. A few ways you can do this include creating a referral programme, encouraging reviews and creating brand trust. Here are some more tips on word-of-mouth marketing.
Cut down on production costs
If your business involves creating a product, then cutting down on your production costs can help you save quite a bit. Research cheaper options for things such as packaging, ingredients etc. Just remember that the quality of your products should still be good, or you may end up losing some of your loyal customers.
Price-shop
Whether you’re buying packaging, ingredients, supplies or anything else you need for your business, price-shopping will ensure you’re getting the best deal. Look around and see if there are any distributors who can beat what you’re currently paying.
Don’t dispose of what you can sell
Did you know that you can actually re-sell certain by-products of your production, such as cardboard? You could also use what’s left over during production to create a new product and add it to your product range (eg. Excess shea butter from a body lotion could be used to create lip balm).
Think virtual
The COVID-19 crisis has taught many business owners that they can survive and even thrive by working remotely and connecting to clients, customers and their team online. Virtual meetings are not only the safer way to meet during a pandemic, they can also save your business on travel expenses. Similarly, renting an office space full-time may not be necessary for your business either. Look into alternative options such as remote work and co-working spaces.
Finally, taking your store online can also save you lots on the rental and overhead costs of owning a physical store. Explore your e-commerce options and find a solution that will give you, as well as your customers, the best quality.
Every business has to cut costs now and then, especially in financially tough situations such as the current COVID-19 pandemic. Making your money go further is an especial skill to have as a business owner, so don’t be afraid to make the necessary changes for your business. Good luck!
