Even the most successful businesses inevitably face one or two cash crises during their lifetime during which paying bills, paying employees salaries, managing operating costs, etc., become a nightmare. Here’s how to avoid such adverse events through cost reduction strategies.
We’re not talking about laying off employees or cutting expenses from an already tight budget. We’re talking about practical ways like the ones below to save your business a substantial sum of money each month.
Become a friend of technology
Is the document submission process taking too long? Is accounting eating up valuable team time? Use the technology! Many companies feel that investing in such products is a waste of money, but very few realize that time is money. The use of products and services saves time and minimizes cases of manual error, which makes work easier and therefore gives more room for creativity.
try before you buy
All seasoned buyers have a mantra; “You need to shop around before you buy.” Likewise, companies shouldn’t jump on a product and buy it for the whole team either. Most products offer free trials or discount offers for the first month, allowing your team to try it and then buy it. If the tool doesn’t offer free trials, buy it for one person before buying it for the whole team. Be sure to compare the different products available on the market, consider their prices, read reviews from your peers, etc. before taking a decision.
Buy in bulk
Buying in bulk is a money-saving principle used by businesses, large and small. Whether it’s the owner of the retail store across the street or designers buying fabrics in bulk for a profit, it’s always cheaper to buy in bulk. Shop for essentials like office supplies like paper, printer cartridges, etc. or products such as tissues, coffee, etc. wholesale. You may be able to save thousands this way.
Track every little expense
Keep track of all miscellaneous expenses or buy tools to track all kinds of expenses, no matter how small or insignificant they seem. Small expenses often add up and create bottlenecks when claiming taxes. The best way to keep track of these expenses is to save all receipts and review credit card statements at the end of the month. There are many apps and service products that can help with this.
Review expenses each quarter
Did you buy a SaaS tool last quarter? Don’t forget to stop the subscription once you no longer need it! If you forget, you’ll find that your business is overwhelmed by services you never use and that simply reduce your bottom line.
Find creative alternatives to traditional providers
All businesses require some services, regardless of their size. If you are looking for HR and recruitment services, don’t just rely on the conventional options, instead explore and then select the agency or services based on your requirements.
Apply credit card rewards points for gift card purchases
Use reward points on your credit card to purchase gift cards to minimize business expenses, such as employee gifts, office supplies, or travel. You can save thousands with these points.
Renegotiate your payment terms and deadlines with clients
If yours is a B2B Business and your clients ask for payment terms of 30-90 days, offer them a discount on their next purchase in exchange for timely payment. Alternatively, you could also give a discount on current invoices in exchange for early payment which can boost your business growth and maintain healthy cash flow through invoice discount platforms.
