20 Nov 2012
Every business is focused on one common goal: making money. Earning profit and increasing overall growth is how most businesses measure their success. However, saving money does not typically receive the same amount of attention as earning money does. Reducing your bottom line will improve the profit margin. This means that even without an increase in revenue, your business will instantly become more profitable. Ideally, every department manager and decision maker should be constantly looking for money-saving opportunities. Everyone should share three common goals: earn profit, increase growth and save money.
Save Money on Marketing
Marketing costs are typically one of the highest expenditures across most businesses. New customers must be acquired and products must be sold in order for the business to continue to earn a profit. Saving money on marketing can dramatically reduce the overall cost of operating your business. Below are several marketing ideas that will help you cut costs:
Piggyback Advertisements J. Donald Weinrauch, co-author of The Frugal Marketer, suggests that every business should find ways to include advertisements within their usual operations. Weinrauch suggests that promotions can be slipped in with invoices, or tucked in customers bags at point of sale systems.
Team Up With Neighbors If you operate a brick and mortar business, consider combining your marketing efforts with your neighboring businesses. You may be able to jointly market a sidewalk sale, or even share mailing lists and distribution channels. If your neighbors sell complementary products, refer business to one another.
Promote Word-of-Mouth A longstanding belief in the world of marketing is that nothing beats word-of-mouth. When a friend tells another friend they like your company, that recommendation carries far more weight than a radio ad. Encourage word-of-mouth marketing by offering referral programs, using social media marketing and directly asking customers to tell their friends about you.
Decrease Operating Expenses
Maintaining the supplies that are required for your business to operate can often be a significant expense. Depending on your exact business, you will have unique needs. However, below are techniques that can be used to save money on common procedures:
Streamline Data Handling According to The Huffington Post, one of the biggest wastes of time in small to medium-sized businesses is waiting for information. Employees may not have access to what they need and it must be given to them by a manager. Optimizing how data is stored and accessed can save a significant amount of time. This is done by converting to a cloud-based data handling system. Cloud-based systems come in many different varieties, however, they all use the same technology. A cloud-based system uses the collective resources of an entire data center to complete the required task. When it comes to data handling, all of the data your company processes can be stored remotely on a cloud. The cloud can then be accessed by any employee, assuming they are granted access to it, and they can begin to complete their task. Additionally, the costs associated with cloud-based systems are significantly lower than an in-house system.
Save on Shipping Most business ship several products and documents throughout the course of a single business day. Saving on this significant expense can dramatically reduce your overall bottom line. One of the best methods of saving on shipping is converting to an online postage system. These systems allow you to print shipping labels in the precise amount required to deliver the package to its destination. This precision can save immense amounts of money. Consider a business that regularly sends a product that costs $1.43 to send. However, they only have stamps and labels in $.50 increments. This means they are losing $.07 on every item they ship. If this product is shipped 100, 500 or even 1000 times per day, the savings will quickly add up.
Your Business Can Save
Saving money in essential areas of your business can ensure long-term success. Managers and decision makers should make a combined effort to regularly examine processes for money-saving opportunities. Even the smallest savings can increase overall profits quite dramatically.
About the Author: Luke Hunter is a contributing writer and financial consultant. He regularly provides clients with new ways they can save money in their business. Luke takes great pride in being able to save his clients money.