All companies should be on the lookout when it comes to saving money. After all, the bottom line can make or break a business. When times are tough it is a great idea to find ways to pinch pennies, and saving money when times are good means bonuses for employees or extra savings in the bank for lean times.
1. Consider Remote Workers
One massive way to save on overhead is by reducing the size of the physical location needed. While many businesses do need to have a brick and mortar shop, such as restaurants and machine shops, others can get rid of the building entirely and allow employees to work from home. It costs a lot of money to heat or cool a building and fill it with furniture and office supplies. Buildings also need to be maintained as things break and insured against emergencies. Going virtual can save the business a lot of money and also save employees money that they would otherwise be spending on gasoline, lunches out and office clothing.
2. Evaluate Insurance Needs
Every company has its own needs when it comes to insurance. Not every traditional insurance company has a solution for each unique business they insure. It is a good idea to shop around every year or two to make sure that there is not a better deal out there somewhere. Businesses may also choose to insure through the use of group captives.
3. Examine Marketing Tactics
As people become more connected through the use of technology, their needs and expectations change. Demographics shift and should be monitored consistently to optimize marketing strategies. Online marketing can be cheaper than traditional marketing as long as the target market is part of a group that regularly uses the internet. Launching a Twitter campaign to entice retirees to consider a product or service will likely do poorly. However, many people regularly use email services, so the use of an email list may generate business more cheaply than a direct mail campaign.
4. Shop Around
When buying new office equipment or sourcing vendors for product parts, it is an excellent idea to get quotes from three or more companies. Even after a relationship has been established with a vendor, it is smart to look around to make sure their prices have not crept up over time. Cheaper equivalents may exist elsewhere and can save hundreds or thousands of dollars a year.
Finding ways to save money for a business is not difficult. Be creative about cutting costs and keep the well-being of staff members and customers in mind before making any changes to keep people as happy as possible.