The cost of running a business is high. Even with technology or decreased cost of labour, you may find yourself on the tipping point of breaking even. Looking for ways to reduce the cost of running your business without jeopardising what you’ve worked so hard for?
Here we suggest 5 ways to lower your business costs while maintaining efficiency and productivity.
1. Lower production costs
Lowering production costs can help to reduce business expenses while improving efficiency. There are several methods to cut manufacturing costs.
Negotiating with your suppliers to reduce prices is one method. While negotiating, you can offer larger deposits to encourage your suppliers to agree to a reasonable price reduction. Alternatively, do in-depth research and let your suppliers know that you are considering more competitive deals. Finding the most affordable yet quality suppliers could improve efficiency.
Cutting material costs is also one of the simplest ways to reduce manufacturing cost. Simply tweaking the design of your products and swapping to more cost-efficient materials can help to reduce costs significantly.
Also consider optimising employee productivity. By improving the skills and productivity of workers, businesses can increase the overall output and reduce unnecessary labour costs.
2. Consider cheaper marketing alternatives
Paid advertising is often seen to take a toll on a company’s budget. While it is not advisable to cut out paid advertising entirely, consider exploring other marketing methods that are cheaper and achieve similar advertising goals.
One of such methods is boosting your social media presence on suitable sites. Consider investing more effort in nurturing your Facebook, LinkedIn, Instagram and Twitter accounts, and reach out and connect with your audience. With the tech-savvy population growing everyday, social media marketing can reach wide audiences at low costs.
Furthermore, ask existing customers to write glowing reviews on telegram or social media channels to boost your reputation and popularity. Offering referral programs could also lead to sales hikes or increase in downloads significantly. Therefore, relying on modern marketing alternatives, such as social media, could help to cut business costs.
3. Prudent financial management
While this seems the most self-explanatory, it is also often overlooked by many companies. Many firms often devote themselves to running the operations, compromising the attention spent on detailed budgeting and financial management. To start, gather the management of your team and collate a couple of business goals your company wishes to achieve. SMART goals would be effective in forming a framework.
Thereafter, create a working budget. A working budget refers to a work-in-progress budget that can be consulted and adjusted in real-time based on economy outlook and industry performance. This allows you to work towards actual business goals and reduce business costs in real time.
Moreover, an important part of financial management is working on cost-benefit analyses and future forecasting. Consider the opportunity costs of any financial decision in order to prevent high interest rates that may add to business costs.
4. Use CardsPal for Business
CardsPal is a one-stop credit card comparison platform and deals app that helps merchants showcase their deals and broaden their reach to customers. CardsPal is currently helping more than 2,100 merchants reach out to its growing user base of around 175,000 users at no cost and commission.
If your company is looking for free publicity and more revenue, consider registering for an account under CardsPal for Business. Three simply easy steps: Add your deals, personalise your brand and get recommended to engaged users! This reduces your business costs significantly as you save on publicity costs with CardsPal while reaching a wide audience! Find out more about CardsPal for Business.
Alternatively, enjoy the CardsPal app as a user! As a fast-growing deal discovery and card comparison platform, they have over 6.1k deals powered by 2.1k merchants like yourself, from categories such as dining, shopping and more.
5. Engage affordable courier services like EasyParcel
Do you track how much your business spends on logistical expenditures? Courier costs may seem insignificant but can contribute greatly to business costs.
Consider courier services that are affordable and offer efficient delivery options. Take for example, EasyParcel. EasyParcel is an online booking platform for parcel delivery that offers local, same-day and international delivery services at affordable costs.
A top choice for customers, EasyParcel offers low shipping fees without commitment. Its current promotion also includes local delivery from S$3.20 for parcels up to 5kg.
On the EasyParcel website, you get to compare the shipping rates and book your preferred courier choice from services like J&T Express, Qxpress, SingPost, Ninja Van, TNT Express.
A clear option for deal-seekers, EasyParcel offers free pickup from doorstep without minimum parcel requirements and free sign up for businesses and individuals. Moreover, all these transactions require no commitment, contract or subscription.
We hope these tips have provided insight to how you can optimise your business expenses. Understanding your business objectives and evaluating your spending can make a big difference in lowering your business costs. By cutting unnecessary costs, you can allocate these savings to areas it’s truly needed in.
Get the Best deals on CardsPal App!
Looking to save more money on your business? Check out the CardsPal app to keep up to date on the latest deals and start browsing for deals on the go! CardsPal is the convenient one-stop app where we show you the best deals in town so you never have to miss a deal again! Get to know us here. Download the app on the App Store or Google Play Store now and get the latest deals, tailored according to the cards you own!