Have you started a new venture or found that your business is struggling in the current economic climate? If so, finding ways to keep overheads low will deliver many benefits. However, you cannot let this negatively impact your output.
So, what are the best ways to strike a balance between low running costs and high standards? Focus on the five items below and you won’t go far wrong.
1. Operate from smaller work premises
When running your business, there are several overheads that cannot be avoided. However, the monthly costs of renting a workspace can be significantly reduced if you implement the right strategy. Outsourcing and letting employees work from home enables you to operate from more modest venues. Selling models like dropshipping can be very useful for reducing warehousing or storage costs.
On a side note, being based out of town can result in lower costs. When combined with a virtual office address in the CBD, you can still maintain the desired brand image.
2. Fully embrace digital marketing
Marketing is an essential feature of any successful business model. Not least because it has a direct impact on sales as well as overheads. In today’s climate, digital marketing is the best way to reach potential customers quickly and cheaply. It is a great way to target members of a specific demographic while SEO will allow people to find your brand organically. This means your marketing efforts will deliver results time and time again.
Offline marketing still has a role to play, especially for local brands. Still, a focus on digital marketing will help keep costs manageable while boosting brand awareness.
3. Invest more in customer loyalty
While gaining new customers is great, it’s not the only key step to consider. Keeping your existing clients happy will keep them coming back to more to boost their lifetime value to the company. It should also make it easier for you to forecast future sales growth. When using outsourced customer services, it is possible to provide 24/7 support. It also feeds into the aforementioned idea of working from a smaller building.
It is said that up to 80% of your sales could come from just 20% of your customers. Combine customer care with loyalty schemes to unlock the full benefits in style.
4. Protect yourself
Taking precautionary measures to protect your business may feel like a waste of money. In reality, though, dealing with the fallout of a problem would be far more costly. Not least because a data breach, for example, would harm your reputation too. As such, you should install the right cybersecurity strategy and copyright your brand and innovations. Taking a proactive approach will save you a fortune in the long run.
Another potential issue that could harm your business comes from bad debt. Therefore, running credit checks on all repayment plan customers is vital for preventing future losses.
5. Find better suppliers
When starting a business, it’s easy to assume that it’s your business versus the world. But you will actually rely on several others. Finding better suppliers who offer the same services at a better price can work wonders for your finances. As well as energy suppliers and insurance firms, you should think about your web hosting package and delivery teams. A courier that lets you share trucks with other local businesses could be particularly useful.
Given that you could be working with dozens of other companies, even a 10% saving on each service could make a telling impact. The sooner you start, the better.
Image Credits: Alexander Stein