It can be tough for businesses, particularly small businesses, to survive let alone thrive in a struggling economy. The good news however is that there are ways in which you can perform a cost reduction audit to cut costs down to a minimum and increase the chances that your business will both make it through the tough times and succeed in years to come.
Cut Down Advertising Expenditure
One good tip is to cut down on the amount you spend on traditional forms of advertising in favour of making use of cheaper alternatives. The world of internet advertising and marketing in particular has created a wide variety of different options that make it possible to reduce the amount of money that businesses spend on traditional forms of advertising while still being able to reach out to customers. Focusing on inbound marketing instead of traditional advertising is one idea, as is making use of SEO techniques on your company’s own website and posting videos on YouTube.
Another good tip is to try to find sponsors for special events. Special events can be large draws for customers both old and new and there are a lot of companies that depend on regular seminars and galas in order to find new customers. One of the best ideas is to try to get sponsors who will be willing and able to pay for these events in return for their own promotion with some kind of advertising at the event itself. This is usually a good deal for both parties, particularly if the two businesses are in a similar industry.
Outsource your Staff
Outsourcing is also the key to saving money for your business. While employees are vital to successful work completion, the costs of employees, which include not just salaries but insurance and even office space, can be the biggest expense any small business is faced with. It is a good idea to try to keep the number of full-time staff members at your company to their absolute minimum while outsourcing any other work that cannot be covered by existing employees to an independent contractor.
Another good idea is to try negotiating with your vendors. You do not necessarily have to keep paying your current rates, and in a struggling economy many vendors will be willing to lower their prices if the alternative is losing a regular customer altogether. A key area that you can often save on is your business insurance options. You may be able to save your company several hundred dollars a month and at the very least, trying costs nothing.