The past year hit many American businesses hard; there’s no denying it. If your business was fortunate enough to ride the tumultuous waves of 2020, you may be wondering how to set yourself up for success now. It is possible to recoup some losses and find yourself in an even better spot at the end of 2021 if you keep a consistent eye on cutting costs. So, where to start?
Go Digital in More Ways Than One
- Remote Work
For many businesses, the pandemic revealed that we can work remotely with great success. At first, it may have seemed a near impossible feat to carry out our everyday work with the same efficiency and attention to detail that we had come to know while working in person. But where there is a will there is a way. Businesses were forced to adapt and adapt they did.
If it is feasible for your industry to continue remote work, consider it. You could drastically reduce costs to light, heat and air condition your office space—or you could consider a smaller office altogether. With workers remaining remote, you can also save on parking costs, as well as cleaning services and supplies.
While many businesses went remote, they also discovered unneccessary paper, ink and shipping expenditures. Antiquated procedures of the past, like paper invoicing, were swiftly replaced with digital solutions. While the switch from print to digital invoicing may come with a slight learning curve for some, the benefits far outweigh the hesitations. Not only will you save on printing costs, but you will also drastically reduce postage and speed up the entire billing process. What once took a full week can easily be reduced to one day—getting invoices paid sooner and increasing cash flow.
Evaluate the Status Quo
What vendors do you work with on a consistent basis? If it has been a long time since you last shopped for vendors, the market has likely changed. You are sure to not only find more options at your disposal, but many offering even more benefits.
However, if your vendors are tried-and-true, long-term partners that you don’t wish to part ways with, consider a renegotiation. You may be able to get the same services at a lower cost or increase your benefits for the same rate!
- Miscellaneous Expenses
Perhaps one of the biggest areas of waste for most companies lies in the category of “miscellaneous expenses.” These often come with very small price points that add up incredibly quickly.
How many magazines does your business subscribe to that are going unread? Do you have an excess of coffee creamer and filters that are simply stacking up in storage? What about user fees for online programs? If you have 40 employees, but are paying for 50 users, it’s time to adjust and save!
The mountain of cost-cutting options can seem overwhelming, so why not find a way to make it enjoyable? Consider creating an internal competition for the greatest cost-saving idea or divvying up your expense sheet and highlighting the most doable changes and those with the biggest savings potential and attacking those first. With an eye on cost savings, soon, your bottom line will be looking a whole lot healthier.