There are two ways of making your business more profitable. You can increase revenue and decrease expenses. You should always being working on both. Here we take a closer look at decreasing expenses.
Whether you are a large business or a sole trader, there are opportunities all around you to save money in your business. Something as simple as video conferencing instead of driving across town or flying to have a face-to-face meeting can save hundreds if not thousands of pounds every year.
Cost Saving Ideas
Thinking about hiring an assistant? Contracting for specific services is less expensive and delivers higher quality results. The internet has created a whole new world of freelancers. Instead of hiring a general assistant, you should hire professionals on an “as needed basis”. You avoid the additional costs that come with employing people whilst gaining the quality a professional brings to each task you hire out.
Purchase your office supplies on eBay instead of expensive High Street shops. If you mail out merchandise, you’ll find a huge savings buying packaging materials on eBay.
If you use the services of other businesses, consider bartering instead of paying for them. If that’s not an option for your business, at least pull in favours and haggle at every opportunity.
If you are paying for full time for information technology (IT), consider hiring this service on an as needed basis. IT has become a commodity service. There are great bargains available when you need them.
Look Everywhere for Cost Savings
If you haven’t done so already, switch to energy-efficient lighting. Turn the thermostat down a degree or two. Reducing all operating costs just a little turns into big savings and more profit.
Increase your marketing affect while reducing marketing costs at the same time. Word of mouth marketing is by far the most effective whilst costing nothing. Every time you successfully wrap up a deal, ask your happy customer for referrals. Don’t be shy about. Look him or her straight in the eye and ask: “Who do you know that you can recommend my services to?” Pause to give them a moment to think. Then follow up to jog their memory. Ask: “Maybe someone at your church or a parent on one of your children’s sports teams”. Don’t stop when they give you one referral. After the first one, ask: “Who else”. Do that three or four times. You’ll be shocked at how many referrals this brings in.
When you receive a referral, ask the customer to call that person within the next two days to let them know that you’ll be calling to learn if they have a need for your service.
But don’t stop with referrals. You will increase word of mouth marketing by asking for testimonials from happy customers. Of course you have a webpage. Post the testimonials there. Post them on a neatly displayed bulletin board in your office. Try it and you may find that free word of mouth marketing completely eliminates your marketing budget.