There’s nothing new about trying to cut costs as a business. But in today’s climate, with employee wages, goods, development, marketing, and insurance costs at an all time high, even the smallest of savings can accumulate to make a sizable difference.
Lately, we’ve been overwhelmed with a seemingly-endless stream of news covering company layoffs, the upcoming recession and a struggling stock market, so it comes as no surprise that everyone from small businesses to top-tier CEOs are looking to save money quickly and get their cost cutting right.
The burning question? Where can businesses — both online and brick and mortar — cut costs, improve their margins and ultimately see more money in their pockets at the end of the financial year?
Money saving tips for businesses
Execute a software audit
How much of the software you pay for, do you actually use? Think of all the marketing systems, development softwares, and employee platforms you’re currently subscribed to. We’re not suggesting you stop using these, but often businesses see a duplication of software. For example, two of the HR or social media platforms you’re signed up to, could do very similar things.
It’s worth combing through what you use, getting rid of what you don’t and most importantly, deciding what you can live without.
Negotiate vendor contracts
Did you find a platform or tool you’re not completely utilising during your software audit? When businesses first sign contracts with vendors, there are grand plans to leverage all their features to get the most bang for buck. Unfortunately — and often due to a lack of resources or time — these platforms fall by the wayside and the money that’s being forked out for a “premium package” is going down the drain.
We understand that you might not want to get rid of a service entirely, but if you’re over-committing or think you’re paying too much for a specific service, now is a great time to negotiate new contracts with your vendors. This can be a big money saver, particularly for the light lift that it is.
Invest in the right tech
One of the most obvious ways technology can help businesses save money is by reducing material costs. From cloud computing to online documents and document signing, tech can cut costs by taking everything digital.
But there’s more to it. Businesses can save up to 70% of costs with automation which is why today, it stands as one of the largest reasons companies invest in tech. Tasks which are otherwise laborious and time consuming, like invoicing or entering information into a database, can now be automated. This removes the need for employees to spend hours on repetitive tasks and instead frees up their time to focus on more important projects — ones that can directly affect revenue.
Amplify customer acquisition channels
When it comes to customer acquisition, we don’t always need to reinvent the wheel. Often, looking at a few simple customer stats can help you optimise what you may already have in place.
Take your abandoned cart strategy as an example. Since 70% of online shopping carts are abandoned (and on mobile it’s a staggering 86%), a nurture series of a few simple emails can turn some of those customers from potential to paying. In fact, abandoned cart emails are said to increase online sales by 20%.
Stop paying unnecessary merchant fees
A business killer, merchant fees can really set you back when it comes to saving money.
Enter Waave, a new world of payments that uses open banking to save businesses up to 80% on transaction fees. If you’re tired of paying exorbitant, and often hidden, merchant fees then you’ll love how Waave has revolutionised the way to pay. Why? Because it helps businesses like yours significantly improve their margins.
Want to learn more? Contact Waave today.