The goal for most startups should be to not only hit a break-even point but to get profitable quickly. This will mean that the startup needs to concentrate on strategies that maximize the amount of money it makes versus spending more time and money on advertising and other marketing tactics that don’t directly add value to its business model or services (such as through paid search ads.) With this in mind, what steps should a startup take to try and improve revenue or even cut back on expenses?
There are many ways to cut down on your business expenses: from making use of more efficient machinery or equipment to re-organizing your workforce, you can find many cost-saving measures and techniques for any company to implement. In this article, we’re going to take a look at tactics and strategies to reduce your business expenses while maximizing potential profit and revenue.
Go for the Path of Least Resistance
Most businesses tend to go for the most popular method, or the trendiest platforms, or the latest technique to advertise, sell, or market something. Instead of going with the flow, dare to be different- and you’ll find that usually, different is almost always affordable because not a lot of people want it.
What does this mean? Take, for example, marketing. Many companies pour in their resources into online marketing, despite evidence pointing that you have to be very specific with your intended audience when doing online marketing. Instead, traditional marketing tactics such as direct mail advertising or even posters and billboards can work. People still go out and see posters and billboards, and receiving letters has become such an occurrence that many people can’t help but check their mail. It’s also very accessible, largely because they’re also not as expensive as they were before. So think of the path of least resistance, and dare to be efficient and different at the same time.
Repair Your Broken Equipment and Appliances
Among the most significant bills many businesses have to pay is their electric bill. Almost all types of work nowadays involve using an electrical device, be it a computer, industry-specific equipment, or even just the electrical items around the office. When all of these electrical gadgets are added together, their power consumption can quickly accumulate to a significant number, causing you to have to pay more. A smart way to go about this is to invest in energy-efficient appliances instead. Replace air conditioners with the newer and more energy-efficient ones, use LCD monitors with a low voltage requirement versus the power-hungry ones, or even use LED lights in your office to save up on costs. Even if these cost-cutting measures might seem like they’re not a lot individually, once they accumulate, they can remove a significant chunk of your electricity bill.
Data Entry In Seconds
Data entry can be such a menial task for employees that it wastes not only their time but also their energy. Especially if people you’ve hired have other, better tasks that they are qualified to do, you’re better off automating data entry. If you already have a bit of knowledge in programming, you can make your own automation program that can suit your needs. On the other hand, you can also hire an expert to do the job on a project basis. You might feel like holding back on spending for it but think of it as an investment. Such a short project to be able to enter data in a matter of seconds can save you a lot more money in the long run.
Find What Works Best for Your Company
Many companies make the mistake of being too cheap when it comes to their marketing strategy, or they choose a more expensive marketing tactic that doesn’t really work for them because of the way their company is structured or operated on a day-to-day basis, such as owning an e-commerce site instead of having a brick-and-mortar retail store; however, some businesses can easily save money by taking a different approach to marketing than they currently do, which will greatly improve their bottom line.
Lastly, Always Negotiate Deals
Any smart business person knows that cash isn’t always what other collaborators want. Sometimes, they’d much rather have an exchange of products and services. In such cases, the key is to find a way to get your hands on something of value to the people who are willing to trade with you – without spending too much money or time – while making sure that you still end up in a position where you can make a profit on whatever it is you’re selling or buying at the end of the day (or month). One clever way to do this is by leveraging what you can offer and making the most of it.