13 Ways to Optimize Costs in Business
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What worked in the past in advertising and taiwan business email list marketing no longer produces the same results today with social media and individual content. In this regard, it is necessary to reconsider the methods of promoting a business.
Example : a jewelry store that regularly used flyers and media advertising in a city with a population of about 200,000. For a long time, the managers hesitated to develop social networks: they believed that the audience would not accept this format.
But a deep analysis of the budget showed that it was time to change something. The company stopped using the usual methods of promotion and opened a store page on VKontakte for the sake of an experiment. It was run as an advertising and educational one, with stories about the jewelry business. A significant audience of potential customers gathered. For the first time in 12 years, the store's sales increased by 27% per year. The company managed to optimize commercial expenses, which had not happened in the previous three years.
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bandoning projects that do not generate profit.
Close those concepts that do not bring profit, but increase your status in the eyes of clients. For example, working with famous companies, brands. Often, cooperation there is not based on full payment. Weigh all the arguments, perhaps in difficult times it is worth suspending such contacts.
Determine which other projects do not provide the required financial result. If you have agreements with some customers on payment deferrals, these options should be analyzed for profitability. Special accounting programs will help with this.
Buy quality used devices instead of new ones whenever possible.
Think about what equipment for the company and staff can be bought used in good condition? For example, limit yourself to buying a used printer, without spending your budget on a new one. Or a new-fangled coffee machine, when there is a cheaper one on the secondary market. Such expenses will not have a negative impact on work, but will help to optimize expenses.
13 Ways to Optimize Costs in Business
Source: shutterstock.com
If we take as an example startups in the niche of selling coffee drinks, many buy used equipment for work. Otherwise, such expenses would greatly affect the budget and prevent the business from growing. A used coffee machine will help save up to half the cost of a new one.
But even in this case there are risks. If you are not careful when choosing these products, you can invest more in their repair and maintenance. Used products are often defective or work much worse due to wear and tear.
Purchase equipment on lease.
This is a fairly common method used to optimize expenses. Its essence is that you lease the necessary transport, specialized equipment and other equipment. The equipment can then be returned.
The advantage of leasing payments is that they minimize the tax burden. If you are on a simplified tax regime, you can reduce the tax by the amount of these costs, and the company on the OSNO will cover the VAT amount.
Reduce your payments for the Internet, mobile communications and housing and communal services.
A method that some managers needlessly neglect. Monitor offers from different mobile and Internet operators to switch to more favorable tariffs. You can do this using the Tarifer service, for example.
When it comes to utilities, be sure to talk to your employees about optimizing costs by using less water and electricity in the office.
Keep track of accounts receivable.
If necessary, assign someone to monitor this debt on an ongoing basis if there are many counterparties. This way, the company will avoid a cash flow gap, even if you agree on partial payment. Many companies do not pay due attention to counterparty debts, and the accounts are actually empty.
Keep track of your finances to reduce expenses.
Do not neglect well-established financial accounting at the enterprise. If the company is small, it is easy to do this on Google services or in the Excel program. Automation is relevant for large businesses.
13 Ways to Optimize Costs in Business
Source: shutterstock.com
Thus, the managers and the owner will always be aware of the current state of the company's financial affairs. The reports will make it clear which projects do not bring in sufficient profit, how competently the budget is distributed, what can be developed more actively so that there is an increase in income while optimizing expenses.