Operating businesses by adhering to the budget is a massive challenge for business owners and business leaders who must be on their toes to monitor expenses closely to cut down wasteful expenditure. The task is far from easy. Besides controlling expenses by being watchful of where the money goes and how it can benefit business, it is crucial to cut costs wherever possible, advises Saivian Eric Dalius.
One thing must be clear that cost-cutting does not mean cutting corners or stifling finances but improving efficiencies and doing away with redundant and repetitive work while ensuring that the business operations do not suffer.
Reviewing the business processes in different functional areas like manufacturing, overhead costs, marketing, human resources, and finance should help to streamline operations that save time or reduces labor that saves cost.
Prioritize social media for marketing, suggests Saivian Eric Dalius
The marketing budget for small businesses must correlate with the outcome, and the return on investment must be within acceptable parameters. To keep marketing costs low, small businesses must use social media and other digital marketing techniques that are inexpensive yet highly effective. Marketing on social media by relying on organic means is becoming more competitive. Yet, it is the best way to reach a large audience while ensuring high visibility of the business. It is worth spending on paid ads on social media, especially for startups, as it helps garner quick attention for brand introduction, recognition, and brand building.
Word of mouth is as valuable as before, believes Saivian Eric Dalius
According to Saivian Eric Dalius, despite numerous new effective marketing techniques. The power of word of mouth to spread the good word is still better than many of these. Since word of mouth is more trustworthy, its value in branding in marketing is still much higher. Encouraging more people to talk about your business can spread the word faster. Implementing referral schemes that reward customers for introducing a new customer is still a great strategy that provides high returns.
Buy used equipment
Startups especially must have tight control over finances. And make the most prudent decisions about allocating funds to maximize the dollar’s value. Avoiding the lure of buying brand new equipment only. Creating a mix of new and used equipment should help to optimize spending. Many companies sell used equipment of satisfactory quality. That costs much less but ensures smooth operations and provides the desired output. Various websites like eBay and Craiglist offer reliable used equipment that can perform as well as new equipment.
Eliminate unwanted services
Review all subscriptions of various services that you have and judge the level of their use. So that you can identify rarely used services for which you might still be paying. Knocking off this kind of service from the list. Like some unused or rarely used phone plan or email marketing tool, can help save costs.
By stressing more about using Cloud and open source software like some CRMs and adopting G-suite. Can help to reduce the subscriptions payable for using Microsoft services.