Almost all companies aim to provide the best products and services with the lowest outlay while maintaining great customer service. However, as a company grows, the costs pile up – often caused by unnecessary resources that are barely (if ever) used.
If you take a step back from your firm and perform a full audit on its spending, you might be surprised just how much cash your company hemorrhages on goods or services that you simply don’t need.
Below are a few tips to help identify and mitigate unnecessary spending – plus, some of the more common culprits that act as a sinkhole for company finances.
Automate wherever possible
Artificial Intelligence (AI) and machine learning have come on leaps in recent years – so much so, that many of the more laborious and time-consuming tasks involved in running a business can now be handled autonomously by tech.
AI software and systems now exist that can handle everything from payroll to Customer Relationship Management (CRM) and even email and social media scheduling to help keep in regular touch with clientele.
Speak to a specialist or check online to see just how much of your business could be automated. Not only will you save considerable time using machines – you’ll also free resources that could be used more effectively elsewhere, on tasks that generate your firm money.
Outsource skills and talent you lack in-house
Hiring, onboarding and looking after staff once they’re employed can be a constant drain on resources for many firms. However, rather than taking on staff full-time, why not concentrate on building a core team then enhancing it with freelance workers?
These days freelancers are available in a wide array of disciplines, from web design to accountancy and marketing. If you find you’re employing workers that aren’t busy 100% of the time, think about outsourcing their work so you can put them to better use.
Through a combination of better technology, improved connection speeds and advanced software, it’s now possible for freelance or third-party companies to work from anywhere, yet link into your company and become part of your team as and when you need them. For example, you could hire the services of an HR Dept in North Derbyshire, while your office could be at the other end of the country – or even overseas.
Also, as freelance and third-party companies can work from any location, you might be able to take advantage of the economic differences between countries and find staff willing to work for lower wages than you could find in your local area.
Using freelancers, you’ll cut your day-to-day overhead and free up time – plus, freelancers tend to work harder since they know they’re only as good as their last job and only get paid for the work they do.
Check the software you use
The trend toward subscription service applications has grown hugely in recent years but, while this can seem like a cost-saving for firms allowing them to spread out the cost of ownership, it’s surprisingly common just how many companies pay an ongoing fee for apps they never use.
It’s estimated in the US alone, firms have wasted $30 billion on unused software. Meanwhile, globally, recent studies found that, on average, every office computer around the world has a somewhat staggering $259 of unused, unwanted or unnecessary software and applications. Take a look around your office and see what that might equate to in terms of wasted revenue.
As a general rule, if you haven’t used an application in the last six months, you probably don’t need it, so check what software you’re still paying for and take a leaner, meaner approach.
Also, as the trend for cloud services grows, there is now a huge variety of web-based alternatives that can replace popular software. For example, Google Docs, Sheets and Slides do a great job of mimicking the most popular Microsoft Office apps, while the excellent Photopea is an Adobe Photoshop hybrid that can handle pretty much everything that its far more expensive counterpart can – yet, is provided for free.
Also, on the subject of free applications, take a look around online for downloadable software that might be offered free. Again, there is a growing number of alternatives to better-known programs that do a great job but are offered for free – for example, the excellent Davinci Resolve video editing package, which has free and premium versions. For the majority of users, the free version does everything you could want, but without the expensive price tag of other apps like Final Cut Pro or Adobe Premiere.