Cutting back
There are many things to consider when starting a business. However, expenditures need to be monitored for everything to run smoothly.
There are many ways to minimize spending, and some methods are so simple they might even get overlooked.
Here are some easy ways to help your business’ bottom line through cost reduction.
Buying second-hand equipment
Buying everything brand new is often unsustainable, especially for businesses just starting out. It can be tempting to give your business a polished look with newer items. But many smaller businesses cannot afford this luxury. There are several places to buy second-hand items. Sites like Craigslist, eBay and Kijiji are perfect for this. They help connect businesses to the equipment they need for a fraction of the retail price.
Social media marketing
Marketing doesn’t always need to be a pricey task. Many businesses already have accounts on social media, so it’s important to use these platforms to their fullest potential. It is becoming more difficult to market effectively on social media without spending money. Though, creating ads on platforms such as Instagram and Twitter is a relatively inexpensive option. Instagram has different bidding models such as cost-per-click or cost-per-impression, prices will vary based on the chosen model. On average, the price of a cost-per-click ad ranges from $0.70 to $1.00. The analytics tabs on many social media platforms make it easy to track spending and adjust campaign strategies. This allows businesses to tailor their ads to help attract their customers.
Email marketing
Another popular and cost-effective marketing strategy is email marketing. There are around four billion email users in the world, and this number continues to grow. Thus, it makes sense to reach out to customers this way. When marketing via email, remember that quality beats quantity every time. People receive several emails a day. So, it’s important to ensure that yours stands out from the rest (and not in a bad way.) Don’t send emails too frequently to avoid being marked as a spammer.
Using website builders
A business’ website is often one of the first places a customer will go when exploring the business’ offerings. A website must be eye-catching and easy to navigate to avoid leaving a bad impression. Hiring a professional to make a website can get quite pricey, but fortunately there are several free online site builders. Services like Wix, Weebly and WordPress are beginner-friendly and still produce great results.
Hiring freelancers and contractors
Contract workers often earn higher wages than regular employees. The Dice 2019 Tech Salary Report reveals that on average, full-time tech employees earn around $93,013. On the other hand, contractors in the same field earn an average of $98,079 for those working for an agency. And $94,011 for those working directly for their employers.
However, contractors are less expensive to hire when cutting out extra costs (such as taxes, benefits, training and other expenditures.) These tend to be spent on full-time employees. Hiring freelancers or contractors also allows for flexibility that isn’t always possible with salaried employees. Hours, job requirements and more can be individualized for each contractor based on the changing needs of a business.
Hiring consultants
Consultants can suggest, implement and guide many new cost-cutting strategies for a business. They can also help to spark ideas among other employees. It may seem counterproductive to pay someone to reduce costs. But an outsider may be able to see things about a business that people within it might overlook. Consultants can help to save in the long run. And the strategies they implement will stay with a business long after the consultant leaves.
Cost-cutting doesn’t have to be an intimidating task. There are many ways to save that go beyond this list. Different businesses will use different strategies based on their specific needs. In the end, it’s important to cut back as much as possible to allow a business to keep growing.