5 Ways Every SME can save Operating Costs without Sacrificing Efficiency

Starting a business could be very tough and you may reach that point where you just want to give up. One of the main and rather tough problems of a starting business is the management of funds, so we bring to you 5 tips on how to manage and save operating cost.

Use Low-Cost Advertising Strategy

The most popular way of advertising is mostly internet advertising such as Google AdWords which could be very expensive for your growing business. Experts who also started with small businesses and have developed them into bigger enterprises have advised that expenses could be cut down when you use cheaper alternative internet marketing and advertising tools which are also effective in reaching a very good number of customers. Merissa .K. Haynes of Wealth Management Group, a very successful businesswoman has recommended public relation as a better and cheaper form of advertising. Other successful people like John Boyd, CEO, Meeting Wave and Big Time Wireless Boss, Shai Atanelov, chose to make use of inbound marketing and SEO techniques of marketing as a cheaper form of advertisement.

Get Sponsors and Contributors for Events

Hosting events such as seminars have proven to be a good way of attracting customers and improving customer base. Experts have advised that an effective trade could be made between the owner of the business who is supposed to host the event and potential sponsors who can benefit in one way or another from the event in exchange for sponsoring or contributing to the event.

Increase Prices of your Products or Goods

This could be a surprise to you considering the belief that a lot of us have that everyone or most people shop on price. Statistics show that not more than 20% of people shop on price. This simply means that majority of people without our knowledge actually shop based on the value of the product or service. So in order to reduce operating cost, you could simply improve the value of your company goods or service and then increase the price. This has shown to be an easy and effective way of improving your profit rate.

Prepare For Everything

We never know what is around the corner for our businesses. The market can change, trends can cause problems and some things just come from completely out of the blue. Ensuring you have contingency plans in place and adequate protection for your business can cost money to begin with but will save you money in the long term.

Decrease Your Expenditure

Reducing your company’s expenditures is another good and proven way of reducing the operating costs of your small business. This could be achieved by negotiating better rates for your suppliers or referral partners, taking advantage of emerging technology and also process efficiency. At each point in time, you could simply look what to do to reduce the expenditures of your business.

Staff Cost

In any company or organization, the cost of paying and maintaining staffs is really very hard after all someone has to do the job around. Experts` has advised that employing fewer full-time staffs and more low-skilled employees, freelancers or simply new recruits on a temporary basis when needed could help to reduce the amount of energy, space, and money spent on staff in order to save more money and reduce operating cost.