This is the second part in a series of posts about how to save money in your business. Check out the first five points here. It is important to be aware of your finances in your business and every so often review any areas where costs can be cut. Saving money in your business where there is unnecessary spending can be the key to growing your business.
#1 Understand your customers
The better you understand your customers, the more focused your business can be. It is important to regularly speak to your customers to understand what they need and what their problems are, so your business is not wasting money on things that are not serving them best. Detailed buyer personas are a valuable asset in business, saving you time, money, and resources.
#2 Let go of old ways
Technology has changed the face of the world. And while you might not agree with some of it, your business must get on board. Spending time and money on outdated systems, equipment, values, and marketing efforts could be draining your business. A lot of outdated practices will only hold you back. For example, if you are still spending money on print marketing and TV ads, consider switching to digital marketing. It can be a lost cost investment to work with an SEO company, which incorporates social media and search engines. Users spend hours a day on these platforms, so you must put your business in front of them if you want to grow, without spending thousands on print or TV ads.
#3 Plan ahead
Having a well-thought-out plan for your business can ensure you are not wasting efforts in other areas. This plan should be the foundation and driving force of your business, and therefore, needs to be communicated to all employees or stakeholders. Planning means you can keep costs low, get the best deals on services and buy supplies you know you will need in bulk. It also keeps everyone within the business working towards the same goal, so systems and procedures can be streamlined. Be sure to regularly review your plan and set measurable goals, so it can be updated where needed to ensure you stay on track.
After the initial time to set up, automation can save your business lots of money as well as increase the efficiency of certain areas of your business. Automation can be implemented in email marketing, customer service, invoicing and many other areas, meaning processes can be streamlined and there is less need to hire employees. Automation has developed to work quickly and accurately.
#5 Word of mouth marketing
Word of mouth is still an impactful way to get the word out about your business, as well as being the cheapest! With a little bit of effort, paired with a good product, customers will be telling their friends and family about you! And now with the use of social media, many customers are posting on their channels when they are happy with their experiences. This can be a great way to build and leverage the platform, for example, by creating giveaways, competitions, and games for customers to get involved in. Every time they enter, tag your business and share on their platform, you are expanding your reach for free!
Saving money in your business doesn’t have to be complicated, go back to basics and experiment with free and cost-efficient ways to save money.