This year, business owners have learned the importance of maintaining a steady stream of revenue while limiting non-essential spending. After months of tough calls and financial sacrifices, many companies are starting to reevaluate their processes and rebuild.
According to professional service network Deloitte, 59 percent of companies globally have effectively responded to the immediate crisis and are now starting to focus on recovery. Now that immediate financial fires have been put out, business owners can strategize how to cut costs and implement long-term money-saving solutions.
Review Your Vendor Relationships
The market has changed drastically and it’s possible that your financial relationship with your vendors has changed too. Taking a closer look at your current vendors can help you avoid complacency in your contracts moving forward. If the demand for your product or service has grown, many times there will be new vendors available that offer more cost-efficient options for your business. Selecting a vendor can be a complex process and a trusted vendor relationship is valuable in its own right. If you don’t want to cut ties with your vendor, but see potential for additional savings, try rebidding or renegotiating the terms of your contract. Oftentimes, vendors will consider implementing add-ons or money-saving discounts to avoid losing a reliable client.
Use Your Time Wisely
The old expression “time is money” couldn’t be more relevant in today’s business climate. There is no shortage of distracting short-term pressures that may be preventing you from achieving long-term growth. Addressing your company's immediate needs while also keeping your eyes fixed on the big picture is a valuable habit that’s worth forming. Another common challenge is the natural tendency to spend time where you are most comfortable. With a long to-do list, you may want to check off the tasks you do the best—and the quickest. But what if those tasks are not imperative to advancing business goals? Set timing expectations for task completion and meetings to avoid unnecessary loss. Laying out a clear path for yourself and your team can lead your business to profitability in the long run. To read more about processes that are busting your profits and how to maximize cash flow within your businesses read our Best Practices on Maximizing Your Cash Flow to Help Your Business Survive and Thrive.
Invest In Marketing
Marketing is an essential part of the sales pipeline and investing in your marketing efforts can help your company achieve long-term profitability. Creating awareness, brand-building and using lead-generating tactics can effectively get prospects into the sales funnel. Cost-effective tactics like email marketing and “click here to download” articles are inexpensive, and leads can be directly attributed to the tactic. If your company does not regularly require marketing services, consider hiring a freelancer. Contract workers are less expensive than hiring full-time employees and can offer you their expertise to learn how and where to start.
Spend Smart With Debit Card Benefits
When making business-related purchases, remember to utilize built-in debit card benefits for additional money-saving opportunities. Mastercard Easy Savings is an automatic rebate program available to all business debit cardholders. Rebates can be redeemed from a wide variety of participating merchants including travel & entertainment, office supplies, business services, telecom, shipping & computer/technology-related partners. Participating program partners can be found by visiting Easysavings.com. Even when profits are thriving, find opportunities to cut down on costs and make it part of your financial planning routine. Scrutinizing how your business spends and saves money gives you a competitive edge and may protect you against future market instability.
Consider these tips and reach out to your banker and accountant to build a strategy to cut costs and ensure the financial health of your business.