4 Easy Ways For Your Business to Save Money Right Now
Here are a few easy ways your business can reduce costs right now without sacrificing the integrity of your brand.
As businesses try to find their footing in the new normal, there's going to be a lot of learning to do along the way. Small- and mid-sized businesses that were hit hard by the pandemic will still be keeping a close eye on their budgets and try to save money where they can while welcoming customers back with high-quality service.
Of course, trying to balance a quality customer experience while being conscious of your business's budget is difficult. Here are a few easy ways your organization can save money right now without sacrificing the integrity of your service.
1. Redirect your advertising spend
How much is your business currently spending on advertising? According to The Balance Small Business, it's likely too much . The great thing about marketing budgets is that they're flexible, so it's easy to redirect funds to a different department and experiment with different media channels. Right now, it makes more sense to pull advertisements from billboards, city streets and radio stations and invest into marketing on social media and sprucing up your online presence.
Refine your marketing budget and invest in a better eCommerce platform to boost online traffic.
2. Scrutinize your utilities
Once you're back in your storefront, it's essential to keep on eye on your utility bills. From energy costs to gas and water, it's likely there are areas you can cut down on unnecessary waste. For an office, invest in lights that are motion-sensitive. That way, if everyone's at lunch, they won't be left on and be wary of cooling costs in the summer. Instead of cranking up the AC, it might be better to add in some fans and dim the lights depending on what your business really needs to operate.
Keep a close eye on utilities to see where you can save money.
3. Evaluate your customer base
When it comes to customers, Forbes highlights the 80/20 rule . This essentially refers to the notion that 80% of effects come from only 20% of the causes - when applied to marketing, this means that the majority of sales come from only a small fraction of customers. Sales and marketing teams must evaluate their customer base to identify who the 20% of these heavy users are so they can tailor marketing strategies to their needs. This effectively optimizes their actions to ensure they're appealing first and foremost to the customers who are likely to spend the most money.
4. Automate what you can
Automation may sound expensive, but it can actually be a cost-effective way for small- and mid-sized businesses to thrive. Overwhelming and over-complicated processes like HR functions, payroll and so on can be streamlined when outsourced to a third party or moved to an online platform. Not only can this save your business money in the long run, but it also helps you make the best use of your time. Instead of spending your time managing employee taxes, you can be focusing on growing your business.
If you're looking for more ways to save money while growing your business, contact your local Vectra Bank representative today to discuss options for small business financing*.
*Loans subject to credit approval. Terms and conditions apply. See banker for details