In the wake of the pandemic and with strains appearing across the global markets, it’s more important than ever for businesses to operate economically. Slashing expenses might seem like a daunting task but getting it right will give you more capital to grow. A methodical approach to cost cutting is always best, so here are a few tips to get started.
#1 Automate where possible
Automation might sound like the future, but it’s already here and changing how businesses operate. The scope of automation is likely much broader than you imagine. Nearly any everyday task can be automated, saving both time and, crucially, money. Using machines to perform a task rather than staff means that you don’t need to hire as many people, cutting down the wages bill. Sourcing automation software is sometimes expensive, but it’s a one-off payment rather than a recurring wage.
Common tasks that can be automated include customer services, social media marketing, data backup and even writing emails. Customer service is one of the most popular areas. Chatbots will respond to customer queries automatically and use machine learning to resolve issues. Computer algorithms are more than capable of drafting basic emails and your social media presence can be fully automated using dashboards like Hootsuite. Automation will shape the business landscape in the years to come, so it pays to get familiar with it now.
#2 Buy used equipment
Businesses tend to hemorrhage money on hardware including machines, equipment and even basic office supplies like tables and chairs. These are all essentials, but you don’t need to buy them new. Balers, for example, are much in demand across multiple farming sectors. These are expensive pieces of equipment, but a recycled two ram baler is substantially cheaper. Used machines are fully refurbished, undergo rigorous safety tests and usually come with guarantees. Buying in this way will save you enormous amounts of cash.
This extends into nearly every aspect of the business. Simple office supplies like desks and chairs can be purchased used, along with computers, printers and scanners. Whatever you need, you’ll be able to find it on the secondhand market for a substantially lower price. Even small purchases should be made in this way and the savings will add up over time.
#3 Shrink the office space
The pandemic proved once and for all that remote work is a viable way to run a business. Employees appreciated not having to make the daily commute, and employers found that their businesses ran just as smoothly via remote connection. Even as people gradually return to work, it doesn’t seem likely that there will be a full-scale reversal of the work from home trend. Hybrid models and even fully remote offices will soon be the norm.
Remote working saves money on office spaces, office furniture and even utility bills like water and electricity. You don’t have to go fully remote straightaway. Even opting for a mixed hybrid model will slash your budget and give you scope for future cuts.