(Disclosure: This is a collaborative/contributing post.)
Every business owner wants a healthy profit margin. The key to maximizing margins lies in keeping track of what's coming in and what's going out. While pushing sales, increasing traffic and creating leads will help increase revenues there are also steps you can take to reduce costs. because inefficiency can cost businesses up to 30 percent of their revenue each year. Here are some top tips to boost efficiency and lower expenses.
Remote working
If the last few months have shown us anything, it’s that businesses can be hugely adaptable. Thanks to technology, millions of companies have kept going during a pandemic and months of lockdown restrictions. Remote working was becoming more popular before the COVID-19 outbreak, but the crisis undoubtedly accelerated the shift towards home working. In the future, it looks as though businesses will continue to support remote working, offering employees more flexibility and using cost-effective measures to oversee operations from afar. Having staff based at home and offering services like online ordering and home delivery may be a change for your business, but it could be a very savvy switch. Working from home can benefit both employers and employees. Employees save time and money without their daily commute and they can enjoy more flexible working hours. Employers reduce travel expenses and they could also capitalize on lower rent fees or even get rid of physical premises altogether (I'm talking to you, productions! Instead of paying a lot for a physical production office, put that money into your staff's pay.)
Outsourcing
Outsourcing is an increasingly popular trend. When you outsource, you hire freelancers or an external agency or firm to take care of a specific project or service for you. Outsourcing offers an alternative to hiring employees on a long-term basis, which can reduce costs considerably, and it gives you the flexibility to access services when you need them. Another significant advantage of outsourcing is that it enables you and your team to concentrate on the tasks that are fundamental to the daily running of the business. Most coaches, like me, have virtual assistants who are contracted either by project or on an ongoing basis, and if you're like me and aren't very good at the technical stuff, you can also outsource IT support. With providers like eSudo, you can take advantage of consulting, IT support, security, cloud services and disaster recovery. Choose what you outsource carefully and look for services that will add value to your business. It’s a good idea to compare quotes and offers and to read reviews and browse portfolios and results before making any decisions.
Technology
Investing in technology is one of the best ways to boost efficiency at the same time as lowering long-term running costs. Technology accelerates and simplifies processes, it facilitates seamless communication between teams and staff members and clients and it reduces the mistakes and costly errors significantly. Carry out a tech audit to see where you may be lacking, look at how your competitors work and do some research to see what kinds of investments could make a difference to your company.
Increasing efficiency can save time and money, as well as maximizing output and improving customer service. If you’re looking to make your business more efficient and reduce expenses, hopefully, this guide will prove useful.