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6 Practical Ways to Reduce Business Costs

By: Annie Button

 

Red SUV car parked in modern showroom. New and luxury SUV compact car. Car dealership concept. Automotive industry. Automobile leasing business. Front view of red shiny car parked in showroom.

Businesses are always seeking new ways to reduce their business costs and increase profits, but if they can do so in a way that also helps your business to thrive, so much the better. The following list provides a great selection of ways you can keep business costs low while also working more efficiently. 

Outsource work

More and more of the modern workforce is going freelance, which is an opportunity that businesses can make the most of. Companies can create temporary teams and minimise their overheads considerably by outsourcing work to freelancers. Having a flexible team helps to reduce your business costs for things like annual leave, sickness and training. Plus, you can outsource a range of tasks, from administrative duties and social media management to SEO, web design and content writing, freeing up your time to focus on bigger projects. It doesn’t have to be a choice between remote freelancers and full-time employees either – an increasing number of businesses are maximising their productivity by choosing a hybrid of the two

Lease company cars

The last thing any business wants to do is commit to unnecessary expenditure, particularly during an unpredictable business climate. Yet company vehicles can be beneficial for a number of companies in a host of different industries. Leasing cars often makes the most sense for companies in need of a vehicle.

“Leasing is a good option as cars are historically one of the fastest depreciating commodities you can own,” explain car leasing specialists First Vehicle Finance. “Leasing gives you the option of a brand new vehicle for a fixed monthly rental plus a full maintenance package can be included giving you the peace of mind that you will not have any nasty unexpected motoring costs”. Leasing a car, rather than buying one, liberates more cash for the company to spend profitably, such as by taking on an extra member of staff or increasing marketing spend. 

Go remote

With an increasing number of companies realising the benefits of going remote, there’s an opportunity to save on office costs by switching to being a fully virtual business. There is now a wide variety of technological solutions for meetings and conference calls, making it easier (and cheaper) than ever to run your business from any location in the world. Not only does going remote help you save money on office rent and maintenance costs, but it also widens the talent pool available to you as you’re not limited to applicants in a set physical location. 

Opt for energy-efficient alternatives

Not every business has the opportunity to work virtually, but for those who have a brick and mortar office, there are still ways to cut costs and keep overheads lower. Utility bills can consume a large chunk of your monthly budget, so consider switching to energy-efficient alternatives that will help you save on your bills every month.

From light bulbs and kitchen appliances to printers and desktop monitors, offices use a lot of equipment that can be switched out for a more energy-efficient product. Another option is to book an energy audit with your energy supplier, who can assess your workplace and suggest options for reducing how much energy the business consumes. 

Use organic marketing strategies

Paid advertising certainly has its benefits and you won’t want to eliminate it from your marketing strategy altogether, but maximising your organic efforts can help your business save money without missing out on visibility. Cheaper alternatives include growing your email list, networking more to build trust among your audience, and increasing social media usage to market your brand and build your following.

Maximise your time

If you can optimise your time and productivity as a business, you can lower your costs significantly. After all, wasted time results in wasted cash that could be put to better use. There are several ways to improve productivity, from utilising software and apps to track staff focus and time usage, to offering incentives for employees when expectations are met or exceeded. It can also help to schedule business activities and meetings with a clear agenda so that the time is used to its full potential. 

Conclusion

Whatever type of business you’re running, there are always valuable ways to cut costs and keep expenses low. The suggestions included in this list can be implemented by any sector and companies large and small, helping you to make smarter choices when it comes to where you invest your money. Cutting costs in business is all about finding alternatives and compromising in ways that will save you cash without impacting your productivity or reputation.

Published: March 11, 2021
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