One of the most important lessons to learn in business is that 'money saved is money earned'.
It is crucial to the success of your business that your focus is not solely on turnover. Increasing your turnover is not the only way to increase your profits.
Look at your business from every angle to make savings wherever you can. Cut down on expenditure at the same time as driving sales forward and bringing cash into the business.
How to cut costs
- Save on advertising by getting your local newspaper to write an interesting article on your business if you sell an unusual product or service.
- Reduce your marketing costs by finding businesses that sell complementary products and arrange to introduce each other's products to existing customers. Consider running joint advertising campaigns to reduce costs.
- Use social media platforms to reach your target audience and build relationships with customers. See social media platforms.
- Engage with social media influencers - working with online ‘influencers’ to promote your brand can help you reach your audience in a convincing way. Done well, it can be more persuasive than traditional advertising. See influencer marketing.
- Go to free networking events as this can help you raise your profile, meet new customers and suppliers, share ideas and knowledge and even source finance. Use our events finder to find local networking events near you.
Reducing your business spending reflects on how many sales you need to make in order for your business to survive. If you can save in one area, then it will reflect in the other. For more information on ways to save costs, see creative ways to succeed in business.
However, you do need to be careful where you make your cutbacks. Making drastic cuts in the wrong areas could create problems such as reduced service or quality or fewer sales as a result of insufficient marketing.