In a cost of living crisis, businesses are inevitably impacted too. It can be scary when it looks like things are getting out of hand financially for your business, but now is the best time to be realistic about where you are at and make changes where possible, to help your business come out the other side in a strong position. Some things are out of our control, yet there are plenty of things that you can do to make a real difference to your business and to watch it prosper in the years to come. So, let’s get into it and learn some different tips for cutting your business’ costs, some of which may require some investment but will be well worth it in the long run.
Work With A Financial Advisor
The first thing you should do to cut costs for your business if you aren’t already is to work with a financial advisor. This may be a small cost for your business, however it could transform the financial situation. There are so many financial intricacies that go into a business, which are very hard to keep track of, especially if you don’t come from a financial background. So, working with a financial advisor can help you to feel in control of your business. They can help with tax to make sure you are only paying what you should be, they can identify the best areas of your business to invest in, then they can also help you to gain access to business funding to steer your business through difficult times. Find a reputable, recommended corporate financial advisor and it can really make a difference for your business.
Create A Budget
Now that you have advice from a financial advisor, you can create a thorough budget to take control of your finances. The worst thing you can do is be unrealistic about how much money you owe, so start by looking at all of your accounts and look at how much realistically you are able to spend whilst still making a profit. From here, you can then put together a budget. Make sure to list all of your business expenses, starting with the essentials and then going down to variable expenses. You will know your monthly outgoings exactly, then you can make a plan about how much you want to spend on the things that you have control over (we will get onto how you can do this later in the article). Knowing where you are up to, then starting to take control, are vital to helping you to cut costs for your business.
Invest In The Right Digital Marketing
Another thing that you can do to cut costs for your business is to invest in the right types of digital marketing. Every business should now be investing in digital marketing, so if you aren’t, now is the time. If you are relying on traditional forms of marketing like newspaper ads, magazines, billboards, TV adverts or radio, it’s time to mix it up. Whilst these forms of advertising work for some businesses, you are spending money reaching out to people without ever really knowing whether they will be interested. Plus, it is extremely hard to measure results from these forms of marketing, as nothing can be accurately tracked.
So, you need to invest in digital marketing. There are so many different forms that are suited to different businesses, where you can target people much more carefully. For example, with SEO (search engine optimisation), it’s all about making sure that your business appears when people search for a term that is relevant. So, you will be investing in improving your visibility for people who are looking for exactly what you offer. PPC is the paid version of SEO, where you can bid to appear at the top of search engines when someone searches for something specific to your business. With Facebook and Instagram paid advertising, you can choose very specific demographics to target, including age, location and very specific interests that are highly likely to be relevant to your business. Linkedin advertising is great for B2B businesses, as you can directly target specific job roles, whether you are looking to develop your business or wanting to hire.
There are so many more digital marketing techniques that are suited to different businesses, but the most important thing is you get so much more for your advertising spend. A lot of these platforms require specialists to get the most out of them, so work with a well recommended agency. A good agency won’t recommend that you just do everything, as it’s likely that some platforms will be better suited to your business than others. Do your research and choose someone that has been recommended to you, as there are quite a few sharks in the industry so take your time to find the right fit.
Hire Instead of Buy
Something else that you can do to cut costs for your business is to hire equipment where possible instead of buying. The cost of safe, high quality equipment for your business can be astronomical, so a great option is to hire instead of buy. You will be able to create really great products or provide really good services, which will help your business to grow, and from there you can buy the equipment when your business is stable. An example would be to say you are starting out as a construction company, it is so much better to go with exceptional quality construction plant hire that will help you to provide the best service for the first year or so of your business, then you can upgrade and buy it yourself when you have the funds. If you scrape together to buy a poor piece of equipment, it will hinder the potential of your business. Hiring will also help with your cash flow, so is a great way to cut costs for your business whilst still ensuring growth long term.
Don’t Automatically Renew Premiums
Last but not least, you shouldn’t automatically renew your premiums. When it comes to insurance, your properties, production supplies, energy bills, delivery costs and packaging supplies, make sure that you get in touch with your suppliers and either negotiate the price or look elsewhere. Before giving them a call, get quotes from other companies to make sure you have a ballpark figure for what you want to spend and don’t be afraid to give them that figure. You’d be surprised at just how much of a difference this can make.