There’s little question that the global economy is struggling thanks in large part to the coronavirus pandemic that’s been dragging on now for about a year. Despite a huge amount of uncertainty and fragility, the IMF projects that the global economy will grow more than five percent this year. That’s good news, right?
Yes and no. While global economic growth is great, it’s a macro-measurement, meaning that economic growth won’t necessarily translate to individual business growth. In fact, with so much uncertainty in the world right now, it’s likely a good time to review your business strategy and make adjustments.
One way that businesses can thrive even in challenging economic times is to cut costs. That said, it’s never a good idea to randomly hack and slash your business budget without giving it some thought. Cutting the wrong thing at the wrong time isn’t just a bad business decision; it can result in lost revenues and/or profits.
Instead, it’s a good idea to periodically review your budget and make changes strategically. Here are three areas of business where you can potentially cut costs without risking growth.
Nearly every type of business in every industry needs software to run. That includes invoicing, inventory (if applicable), project management, communications, customer relationship management software, etc. Most of these packages charge an annual or monthly software licensing fee. That’s normal.
The good news is that in almost every category, there’s competition. And when there’s competition, there’s the opportunity for savings. For one, you might want to see if there’s a discount for paying annually. If that’s the case, and you like the software you’re using, then it’s easy just to switch. In some cases, you may find you’re not even using the software and wish to cancel it altogether. Another scenario is looking for a less expensive alternative.
Now, there are a few things to consider if that’s the road you want to take. First, keep in mind that it costs time and energy to look for and review new software packages. Additionally, there’s usually some sort of transition cost, which is usually the time and expense it can take to transition from one system to another. All of this should be taken into consideration before making any dramatic changes.
Reduce Overhead Expenses
Every business has overhead—office space, electricity, internet, etc. Depending on the type of business you have, most of these types of expenses don’t have a big impact on your growth potential. And that means they are all candidates for finding less expensive alternatives. For example, there are many internet providers out there, and many of them have offers for new customers. Who knows, you might end up liking your new provider better.
Outsource Unessential Roles
Most businesses like to keep their core competencies in-house, and that makes sense. Why give up the secret to your success?
But there are plenty of other roles/functions a business needs, but doesn’t need to be an expert in. That’s where outsourcing can be a real budget cutter. These roles can vary widely—from customer service to executive assistant to marketing, for example. But outsourcing them to freelancers or remote workers can go a long way to save you money, since you often don’t need to pay for their healthcare, payroll taxes, etc.
What’s even more interesting is that you can even outsource an entire team, including a manager! If you’re considering cutting costs by hiring remote workers, Thankz has exactly what you need. We offer a global team of Thankz Expertz in a wide variety of roles and functions, and we can find the perfect fit for whatever you need. Contact us to discuss how Thankz works and how we can help you cut costs without jeopardizing growth.