One way to improve your business’s bottom line is to lower your expenses, one specific tactic is probably not going to make a large impact on your business but if you make several changes over time, it will.
There are also a lot of tools out in the market today that can help you analyze and automate your system or service but they might be expensive, instead think about making small manual changes or use a low cost app instead of expensive software to improve your bottom line.
Here are some ideas on how you can lower your business expenses:
Lower your Marketing Costs
As a business owner you know how marketing is important for your business and how expensive it can be. If you are trying to run your business on a budget then that adds another challenge but there are some simple ways to reduce marketing costs e.g., try to educate your potential customers about your product and services in the ads you run, tell them what benefits they will get from it. This will help with the conversion rate of your ads.
Another approach is to combine your promotions. Donald Weinrauch, co-author of The Frugal Marketer advices small business owners to take advantage of “piggyback promotions.” By “including advertising material in other mailings, such as in invoices,” you will save money on printing and postage. Also, insert fliers, coupons and other media into your customers’ bags at check-out.
Manage Your Employees’ Time
Keeping track of your employees’ hours should be an essential task of your business, apps like ezClocker can help you save time and money by automating the process where employees can clock in and out from job sites using their own device so you don’t need to buy expensive equipment and you the employer can check if they were actually at the job site by viewing the time entry GPS data. You won’t need to pay a supervisor to drive from one site to another just to make sure all employees clocked in at the job site.
Do an Internal Audit
David Finkel the author of Scale: Seven Proven Principles to Grow Your Business” advises to “review your vendor list regularly. Make an annual or semi-annual review of all your key vendors a standard practice in your company.Also make sure you flag all automatically renewing contracts to pop up for review and rebidding sixty to ninety days before their renewal.”
Automate Your Customer Invoices
If you send out invoices manually by mail, the amount of time spent printing, mailing and then following up on the customers who did not pay takes a lot of time. Why not use an accounting software that can do it for you automaticly? One such tool is Freshbooks which helps you send invoices to your customers but not just that it allows you to see when your customers looked at the invoices, automatically sends reminders, and keeps track of how long each customer typically takes to pay so you can plan ahead.
Focus on a few things
Sometimes just simplifying things makes all the difference. Royale Scuderi a business consultant says “As a small business owner, I find narrowing my business focus to be one of the most effective strategies to improving my bottom line. By limiting the types of services I offer and projects I accept, I am more productive and produce higher-quality work.” If you offer too many services consider simplifying your business model and specialize in a few things.