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There comes a point in the life cycle of every business when taking measures to reduce spending is unavoidable.
But even a whispered rumor about downsizing is enough to send your staff into a panic. While they’re busy worrying so much they can’t pay attention to their jobs, you’re stuck trying to figure out how to cut costs without laying off employees.
Fortunately, slashing business spending doesn’t require letting any of your talented team members go. You can cut costs – not corners – with a smarter approach to money management in other areas.
Admit it: You have no idea where some of the money in your business is actually going. It’s a common problem for small business owners. Things get crazy, you stop updating the books on a regular basis, and you suddenly find yourself staring at a stack of receipts for things you don’t remember buying.
Get this cycle under control with a serious assessment of all business costs. Start with a list of the essentials, such as:
After these, list other routine purchases that aren’t strictly necessary for operations.
Finally, make a list of things you buy but don’t really need. Take an honest look at these lists, and get serious about making cuts, including paying off problematic debt. Create a plan for better budgeting going forward, and stick with it.
Since the insanity of doing business will inevitably distract you again at some point, it might be a good idea to invest in a bookkeeping service to keep spending on track, and reduce the time you spend on monitoring operations.
High employee turnover is expensive. Did you know replacing a team member who makes $30,000 to $50,000 a year can cost up to 20 percent of their salary?
That’s $6,000 to $10,000 getting siphoned away from business operations to pay for recruitment and training!
It makes a lot more sense to retain top employees instead. Keeping people around not only saves you money but also increases efficiency by:
If you want your employees to stick around longer, start them off well with a stellar onboarding program. Don’t just go through the motions of training; really work at getting people comfortable with their part in the vision and goals of the company.
Employees also stick around longer if they feel valued. What’s the best way to show them you care?
You can give incentives, but the thrill of these is short-lived compared to what today’s employees really want: opportunities to advance. Education and training to strengthen skills and prepare for higher positions makes for a happier, more satisfied workforce.
Increasing marketing while cutting costs is a bizarre paradox of the business world, but it works. Why? Because marketing brings in customers, and customers bring in cash. More sales with fewer expenses translate to higher profits overall.
There are plenty of ways to power up your marketing without emptying your business bank account, including:
With a little trial and error, you’ll find the best – and cheapest – marketing plan for your business.
While a totally paperless office may be a pipe dream, that’s no excuse to waste money on unnecessary printing. Paper and ink are expensive, and costs add up fast if you’re still relying on inter-office memos and giving everyone huge packets at every meeting.
A better solution? Go digital.
Cloud-based applications for communication and collaboration, such as Slack and Basecamp, keep your team connected without any messy paperwork.
Payroll services digitize and automate time-consuming administrative tasks. Best of all, paperless billing and invoicing make it much easier to track payments without the need to juggle a stack of statements from multiple vendors.
Digital applications are also great for supporting a mobile workforce. Giving staff members the option of working from home cuts down on office costs and fulfills the growing desire among workers for flexibility in their schedules.
Check out virtual meeting apps like GoToMeeting or Zoom to keep remote employees in the loop.
Streamlining business spending is easier with a little help. Business services like those available from National Business Capital support your cost-cutting efforts through strategic automation, smart optimization and fast processing.
Choose one service or a combination to create a perfect formula for lowering costs without letting any of your valued employees go.
National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.