Part of the process of building a business that will stand the test of time is ensuring that your finances are in order.
However, this can feel near-impossible in the current climate, due to the rising economic uncertainty we are facing. For example, a recent study found that 69% of business owners are worried about the impact inflation will have on their annual sales figures.
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Fortunately, there are still a few different ways in which you can make sure that your business’s financial situation improves, such as finding ways to save money. Read on to find out more.
Table of Contents
1. Have a clear budget in place.
Having a clear budget in place that outlines exactly how much money you can spend each month is crucial when it comes to saving money. This is because it can help you to cut down on unnecessary spending, while also ensuring that you’re paying close attention to how money is moved around your business. Without a strict budget in place, you could be inadvertently cutting into your profit on a daily basis.
2. Invest in cybersecurity.
Cybersecurity breaches can cost your business thousands of dollars, while also leaving your reputation in the dust. As such, you should invest heavily in your cybersecurity efforts moving forward to protect your finances. For example, you may want to work alongside a company that offers attack surface monitoring so that you can identify potential weaknesses in your network before they are exploited.
3. Allow your team to work remotely.
Allowing your team to work remotely (where feasible) is another great way to save money. For example, it means that you can downsize your office, reducing overhead costs and adding more money to your bottom line. In fact, a recent study estimated that “the average business can save around $3,000 annually for every staff member who works remotely for 50% of the week.” Remote or hybrid working can also help to improve your employee retention rates, meaning that you have to spend less money on hiring and training each year, too!
4. Invest in automation.
There are many tasks that you’ll carry out on a regular basis that, while crucial, do not help you to ‘earn money’. For example, this could include responding to customer emails and messages, or scheduling meetings and calls. Thanks to rapid technological development, there are now plenty of ways in which you can automate these tasks, which would otherwise take you away from money-making opportunities.
As such, this is something that you should consider investing heavily in moving forward, especially when you consider the amount of money this will help you to save over time. That being said, there’s plenty of free software for you to try, too.
5. Track the ROI of your marketing campaigns.
Companies typically spend around 5% of their annual revenue on marketing, which is much more money than you may initially think. For this reason alone, you should make sure that you carefully assess the ROI of each and every one of your marketing campaigns. After all, if you’re not achieving your desired level of engagement or conversions from a campaign, this is a clear-cut sign to go back to the drawing board.
If you’re finding it hard to assess the effectiveness of your marketing campaigns (beyond looking at the number of likes you get), you may want to hire or outsource a marketing manager who can provide you with a more detailed insight into campaign performance. S
6. Make sure you keep your customers on your side.
A study from Harvard found that “acquiring a new customer costs 5x more than retaining an existing one.” As such, you can save your business a great deal of money (and enhance your reputation) by working to keep your customers on your side. Fortunately, this is relatively easy to achieve, as their loyalty is often built on receiving excellent customer service. Generally speaking, the nicer you are to your customers, the more likely they are to come back.
Final thoughts. Whether cutting back on spending is something you’d simply like to do or is absolutely necessary, you’ll be pleased to hear that there are plenty of ways in which you can achieve this goal, without limiting your output or growth. This includes investing in what matters, such as cybersecurity, while cutting back on other expenses, such as ineffective marketing campaigns.
However, it is worth noting that this is an ongoing process. You need to review your finances on a regular basis to ensure that you are setting yourself up for long-term success in this regard. Otherwise, you may soon find that you are struggling to pull money together once again.
