When you run a business, controlling expenses and spending wisely is key to keeping on top of your finances. Even if you are turning over a lot of money by selling your products and services, you don’t want to be squandering those margins on things you don’t need or can get cheaper.  

For many businesses, finding ways to cut costs are the key to staying in business at all. The last few years have not been kind to most industries that are still recovering from the economic impact of the pandemic. Now, the cost of living crisis that is happening in many countries is causing people to cut back even further on their spending. 

The financial health of your business comes down to two things, the products and services that you sell to customers and the way you spend your money. Here are some tips for looking at the second one, and saving on business costs. 

Everything should be considered 

If you’re serious about saving money, then everything needs to be on the table when you’re looking at efficiencies and savings. From your business premises to your stationery, you need the same focus. 


Consider hybrid and remote working

The traditional workplace setting is changing, and people are gaining a better work-life balance from this. It can also have excellent financial benefits too. After all, happier employees are usually healthier and more productive, which can directly affect your bottom line through increased sales and lower recruitment costs. 

You may also be able to downsize your business premises if you have fewer people there on a day-to-day basis. Or you can sub-let additional space to bring in extra revenue. 

If you choose to move to a fully remote model, then you can save on business premises costs altogether. You may still want to meet up from time to time so can hire space as and when you need to for a fraction of the cost. 


Research suppliers

A good supplier isn’t all about price. The quality of products, the service, and reliability all make a great supplier, but you should also try to look around for good value too. 

Ask around for recommendations as well as do desk-based research too to find the best places to shop online for the things you need for your business. If you are shopping online in regular online stores, then you should always check if they have a business account facility that may have better pricing or payment terms that you can take advantage of. Even if it’s just a few percent, it will add up over each purpose. 


Save on equipment

Office equipment can be pricy and needs to be replaced quite regularly. There are ways to reduce this, such as buying your equipment used or leasing it. A lease agreement means that you can accurately forecast cash flow as well as always have the most up-to-date equipment for your employees. 


Automate

Companies both large and small can use automation to their advantage to save time and money as well as increase sales. Look at the areas of your business that you’re currently spending a lot of time on manually. This can include marketing, HR, finance, and logistics.  You may need to spend money on the software and set-up initially, but then the automation should kick in and free up your time for business-focused software. 


Outsource

There are two great reasons to outsource. Firstly, it allows you access to great talent without having to employ someone directly, which entails much more than just a salary. You also need to consider the training, benefits, vacation, and legal aspects of having an employee. Outsourcing means that you can hire people when you want them and scale back when you need to. 

Outsourcing works on a financial basis too, letting you control your costs. 


Free resources

Companies work on many different types of software today. From banking to marketing, you are probably using a few of these to run different parts of your business. Look around for free versions that do the same thing. Reducing your monthly spending on subscriptions can make a difference to your cash flow. Only pay for those pieces of software that have a real benefit to your business and either make life easier or save you time, allowing you to focus on other areas. 


Content marketing

Content marketing is creating online material to promote your business, but not in an explicit way. This can be through videos, social media, or videos. They should form the basis of an inbound marketing campaign. 

But creating lots of content isn’t the best use of resources, you need to be clever with it. Each piece of content you create has to do the work. So instead of just writing a blog, also create social media posts, infographics, and newsletters too. 

This will ensure that your content is working for you you’re able to keep it going with the resources you have. A strong inbound pipeline is great for attracting and converting customers. 


Video 

Traveling to client and partner meetings can be time-consuming and expensive. It’s money to travel, time out of the office, and lowers productivity. Instead, use video conferencing for the majority of your meetings in order to reduce these costs. 

Save the face-to-face meetings for the really important elements of the client or supplier relationship. It’s becoming much more common to do things this way, so you probably won’t find much resistance. 


Negotiate 

Find ways to partner with other companies or freelancers in order to swap services and save money. For example, if you’re a marketing company, you could provide a marketing campaign to an accountancy company in exchange for working on your annual accounts. 

Supporting businesses in this way can give you great partnerships with others that can benefit you well into the future. 

You can take this further by splitting other costs with other businesses too. This could include sharing office space, partnering up for trade shows, or getting a better deal with suppliers by promising work from both companies.