2020 has been full of ups and downs, with an emphasis on the latter. It won’t come as a surprise that lots of businesses are missing the mark on their projected 2020 earnings. 2021 will be all about making a statement to the year past. Tell the new year you won’t be defeated by 2020, and neither will your business. To make a comeback, you’ll need to save money, and these nine methods can get you there:
Get in on Group Purchasing
Companies will always need to purchase materials and supplies, so this isn’t a cost that can be eliminated. It can certainly be lowered, however, by buying in quantity to garner bulk discounts.
Many small businesses can’t manage large outlays, though. Lucky for them, they can join a group purchasing organization. A GPO leverages the purchasing power of multiple organizations to qualify for massive discounts. It takes a short amount of time to get set up, and you’ll be saving on a process you’re already invested in.
Double Down on Remote Work
Did your company implement remote work practices during the pandemic? While this approach was taken to help keep employees and their families safe from the virus, it’s also an effective cost-cutting strategy, the blog incomeholic says.
Fewer employees in the office mean you need less of everything from office space to break room snacks. Consider offering remote work options full-time, even after we’ve reined in Covid-19.
Don’t worry about the output of employees who opt to work remotely. Studies have found that employees are 13% more productive working from home than in the office. Not only will you be saving on overhead costs, but your employees’ extra effort will give your business an added boost.
You can also look at outsourcing some of your workload. When you contract projects to third parties, tasks that don’t require a full-time employee can get done at a discounted price.
Fine-Tune Your Marketing
Have any marketing campaigns that just aren’t getting results? Kick them to the curb. Underperforming marketing campaigns are deadweight that will only slow you down as you try to break loose in 2021.
To get the most out of your marketing efforts, focus on what’s working. Were you experimenting with radio ads that haven’t yielded high conversion rates? Swap them out for posts or paid ads on the social media channels where you’ve seen the most engagement.
You can also get creative with your marketing, looking for ways to piggyback onto other aspects of your business. Coupons attached to invoices or fliers bundled with purchases can generate more sales through relatively passive means.
Eliminating your paper trail does more than help the environment. By going green, you get to keep some more green in your wallet. The cost of paper adds up over time, especially when you use a lot of it. You can avoid that bill entirely by going paperless.
Look for the activities that generate the most paper in your workplace and then digitize them. There are software applications for booking appointments, billing customers, taking inventory, and more. Back up all this information in the cloud, and you’ll secure vital business information at a fraction of the cost of paper records.
Focus on Retention
Hiring and training new employees is one of the most expensive operational costs you’ll encounter. The higher your turnover, the more money you’ll shell out to get some new faces in the office. Instead of enduring this vicious cycle, concentrate on keeping your current employees happy.
Retention is much more cost-effective for businesses, and it helps your business run efficiently as well. By retaining employees long-term, you’ll have an experienced team that’s familiar with their roles and can get the job done.
While your compensation packages will need to be competitive, retention strategies don’t necessarily require costly perks. Treating employees with respect and showing appreciation for their efforts won’t cost you a thing.
Hire a Financial Advisor
No one will know how to save a business money better than a trained professional. Every organization is different, so it’s nice to get a trained eye that can look for specific needs within your organization.
Besides looking for ways to cut costs and strengthen your budget, a financial advisor can dig deep into your company’s taxes. This is one of the most complicated aspects of a company’s finances, and one that many business owners can’t address on their own. A financial professional can help you find ways to reduce your tax burden and save money in 2021.
Trim Down the Meetings
Meetings have a way of proliferating. What begins with the noble desire to keep team members informed and promote joint decision-making often ends in a costly time suck.
Far too many meetings waste participants’ time due to poor planning and organization. By keeping employees away from revenue-generating activities, meetings’ costs add up.
In 2021, work on meeting quality over quantity. Consistent communication throughout the week (via email or messaging platform) is more efficient than a weekly team debriefing.
When meetings are necessary, stick to an agenda. Have attendees prepare beforehand to make sure the time is well spent and beneficial to the company.
You’ll be surprised how much you can save just by reviewing every aspect of your business regularly. You might unearth unused subscriptions you’re still paying for or a double charge on your last shipment that needs to be revised.
Review invoices, bank statements, and insurance policies at least monthly. Look for any unnecessary cost that can be cut or expense that can be bartered and lowered. You’ll catch mistakes as soon as they occur and find small savings that will add up over the months.
Avoid Debt Service
Debt is the silent killer. While businesses need funding to get going, money spent on debt service is money squandered. In 2021, strive to pay off any existing debt you have and try to avoid taking on any more.
If you’re planning to expand operations and need a loan for a second property, seek the lowest-interest option available. Be sure you can take on extra debt before jumping the gun. Another big hit like Covid-19 could put you in a bad spot.
2021 can be your year. Make saving money your top New Year’s resolution in order to move your business forward.