Do not save what is left after spending, but spend what is left after saving. – Warren Buffett
You can argue there are many ways to improve your business; however few can argue there is anything more important than cutting costs and saving money. To this, we've collected a list of the best procedures businesses can implement to help lower company overall spend immediately.
#1: Lead By Example
In our research, this was the most common recommendation that we found. If you are in a leadership role, then actively embracing cost saving initiatives – in word and action – is crucial. Your employees subconsciously follow the examples of those in leadership positions. Employees are less likely to tighten their respective budgets if they see managers and executives being cavalier about their own spending.
#2: Analyze Your Data and Make Changes
The easiest way to save money is to stop wasting it, so it’s imperative that you identify where you are overspending and do something about it. With the massive amount of information most companies collect, you can easily analyze the data to find areas that are desperate for optimization. Using a trusted analytics software like SAP Analytics Cloud, you will areas to cut costs and identify opportunities to increase revenue.
Having a clear view of your data is the only way to make informed decisions that will cut costs and drive profit.
#3: Cut Down On Mundane Meetings To Boost Efficiency
Sadly, this is the tip that seems to be the least implemented. Every hour spent in a non-essential meeting is an earned hour lost. Unnecessary meetings have the negative affect of desensitizing your team to genuinely important ones - so have a clear agenda when scheduling your meetings. Here are some quick tips for productive meetings:
- Have a set agenda in place (include a timed schedule and goal for the meeting)
- Only invite people that absolutely need to be there
- Email everyone the agenda prior to the meeting and ask if there are any questions
After cutting out unnecessary meetings, your employees will get their time back and they will be far more efficient.
#4: Stop Paying For Your Own Servers, Live in the Cloud
Running your own infrastructure can lead to expensive infrastructure and long-term maintenance contracts. It is time to get strike both those cost down by working with an experienced cloud host will immediately save money. Eliminating your on-site hardware costs will free up your IT team, giving them time to identify and optimize your business process. In addition, migrating your workloads to the cloud instantly provides you enhanced security, accessibility and scalability which is impossible with a fully on-premises model.
#5: Learn to Barter Everywhere You Can
The more we reviewed this rule, the more value we found in it's practice. Bartering with other companies – as a “free” exchange of products or services - is an excellent way to save money while simultaneously adding value to your business. From help with marketing, sales training, website design, strategic advisory or even office supplies – you’re likely to find another company that’s interested in what you offer as a quid pro quo to what they can offer you. In addition, the services you provide can easily be leveraged into a valuable customer referral.
#6: Review Your Operating Expenses Regularly
If you’re truly serious about saving money, then you need to see every spend area as a potential area to cut costs – this includes your spend around the office. From paper towels to laptops, buying in bulk (based in need) is a smart way to save money. You should also do an annual review of your vendors on a regular basis. Your vendors need your business and will almost certainly offer you discounts to keep it. This applies to corporate discounts as well from your printing company to where you buy your office coffee or bagels.
#7: Reward Your Top Talent & Customers
Just like investing in a trusted analytics software saves your business money, investing money in your star employees is a case where you can save money by spending it. Providing bonuses to your top earners/producers and discounts to your best customers will pay off in the end with more deals and renewed contracts. Conversely, now is an essential time to review and identify under performers that aren’t providing the value that they once did.
Always remember: Making money takes vision, drive, resolve and little bit of good fortune. Saving money only takes resolve.
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