Profit margins are the be-all and end-all of running a business, and with so many expenses coming from every angle, it can be a huge challenge to keep things cost-effective. 82% of small businesses fail because of cash flow mismanagement, which goes to show just how important it is for a business to maximise their income and minimise their output.
There are a range of things that you can do to keep your business cost-effective, so take a look at these key points and ask yourself if you’re already implementing them:
Rent Equipment / Technology
Hiring equipment through a technology rental service not only enables you to have the most up-to-date technology at your disposal, it is also much more cost-effective than purchasing the equipment in its entirety. This is especially useful when it comes to equipment that you only need sporadically, such as projectors or video conferencing tools. Another benefit is that you won’t be burdened with the cost of repairs or upgrades.
If you’re a small business then chances are you won’t be able to afford a large number of full-time employees. What’s more, you probably don’t need extra resource every day. Instead of hiring extra members of staff and paying extra full-time salaries, consider outsourcing the work you need to freelancers using sites such as Upwork or eLance. Here you’ll find a whole host of qualified freelancers at your fingertips, from every industry you can think of, and you can simply pay them by the hour as and when you need an extra helping hand.
Many small businesses often feel that they need to spend a large chunk of their money on rent for an office space, but this can really eat into your finances. While it’s true that a good working environment will foster productivity, there are more cost-effective alternatives than simply going all-in on expensive premises. Many startups are choosing to work in coworking spaces, which are available at very affordable monthly rates, while you can also find some that do day passes.
Business trips can be a great way to close deals and network with industry peers, but they can prove to be very costly by the time you’ve forked out for travel and accommodation. With the advent of modern technology, the need for business trips is waning, as video conferencing slowly becomes the norm.
Remote working is another great way to keep business costs down, and the creation of cloud-based services makes this all-the-more possible. Flexible working is becoming more and more valued, and – dare we say it – expected by employees, so allowing staff to work from home will improve productivity and job satisfaction as well as saving you money on office space. Using zoom virtual background can help you make the right impression when you are on a video call with your co-workers or clients.
How many of the above are you already implementing? With a little streamlining of staff, office space and equipment, your business will become more cost-effective and therefore more likely to succeed.
A guest post from Hire Intelligence.