Once in every month, some of the local entrepreneurs in my city (including me) get together in a park and share our business experience. During one such monthly meet up, one of us raised an interesting question to the group: “what are the best cost-cutting ideas that I can implement in my business?”
The question made us put our coffee mugs back on the table. Each of us started thinking ourselves about ‘how am I reducing my business expenditure.’
While thinking, we realized that we unintentionally apply some small tips to cutback the operational costs in our business. And, everyone shared some of the strategies that they are adopting in business with the group.
Here I’m putting together some of the cost-cutting ideas among that.
Jot Down all Expenses
You will not be able to manage the business costs if you don’t have the track of it. Try to keep the record of all your expenses in business, including the little ones. Any efficient accounting software can help you with this. It categorizes each of your business expenses and assists you to sort out the unnecessary ones among that.
Once you find out the unnecessary expenses, try to reduce each of them from the next month. Make sure that you are not suddenly cutback every extra expense in your organization. You should consider the mentality of the employees and slowly implement this strategy.
Cut Traditional Marketing Methods
Traditional advertising methods such as newspaper, TV, hoardings, etc. are seemingly less effective and more expensive nowadays. Try to adopt new advertising tools like Google AdWords and Facebook Ads in your business. They are more powerful and very cost-effective. Also, they enable you to target the audience from a specific city, gender, and age-group. Through this strategy, you can reach your product to the targeted demographic.
Build Better Partnership
You might have seen the TV ads that offer DTH box comes bundled with a TV. This is the best example that shows how two companies should create an effective partnership.
So, try to explore each opportunity to partner with non-competing companies to promote your products and save on marketing expenses. Its important to make sure that your collaboration is beneficial for both the partners. If it is not so, the credibility of the collaboration will come under question.
Conduct Virtual Meetings
The latest technologies can help you save a lot of travel expenses in your business. Next time, when you have a meeting with your client, who is in another city, request them for a Skype call. It helps you reduce traveling expenses. Most of the companies nowadays prefer Skype video calls with clients who are within the city and out of the city.
(It is true that the first meeting with a client is important, and it should be face-to-face. But, all follow-up meetings can be done virtually)