In competitive times, it’s important to take stock of costs and trim any unnecessary business costs in order to ensure your business is fighting fit to thrive in a tough marketplace. Cutting costs need not be at the expense of business growth, though. Keeping costs low can enable your business to be more competitive, whilst at the same time increase growth.
Researching your market thoroughly can pay dividends in discovering new areas into which to expand. Neglecting research and development can be costly if you launch a product or service and have failed to do fulsome market research in advance.
Use WordPress for your website
A content management system such as WordPress can provide a flexible and very affordable option for your business’ web presence. Moreover, WordPress is a relatively user-friendly platform for the less technical amongst us and therefore provides a good option for start-up businesses, in particular, who want to have a web presence as part of their mix, but also want to keep costs low.
Consider the types of marketing which are most effective for your business. Using an effective and targeted social media digital marketing campaign can often prove more valuable than a more expensive print press campaign.
Focus on what you’re good at
In lean times it is important to go back to basics and look at your core business to see what your healthiest profit margins are. Quite often these are products or services that you make or provide which made you establish your business in the first instance so going back to basics is often a good starting point for growth and cost cutting.
If your business is in a traditionally high staff turnover sector, it may be worth considering outsourcing your human resources. This can dramatically reduce time and money spent on advertising, recruitment and selection, and will also act as an insurance policy for fulfilling employment legislation responsibilities.
Outsourcing payroll, bookkeeping and accounting can prove a cost efficient method of managing time-consuming areas of your business. In particular, engaging a debt recovery agent for debt management can also pay dividends because it means you can concentrate on what you’re good at, your core business, while they guarantee to recover your outstanding debts!
Adopting a flexible budget and ensuring that you review it regularly is a vital tool in your armoury if you are to cut costs. A dynamic budgeting strategy can allow you to react quickly to external environmental factors either saving you money or allowing you to take advantage of market trends. A budget should never be static and something you arrange at the start of the financial year, and never look at again. It should be under constant review. Overall, cutting costs means thinking about what you absolutely need to do to keep your business on track, as opposed to what you want to do.
If you are struggling with what cuts to make and think that administration might be your only the solution then check out our information on how we can respond to your administration needs.