t’s A Dog-Eat-Dog World Out There: Does Your Company Need To Slash Costs?
When it comes to your business, profit margin is everything. It doesn’t matter how long you spend pouring over your accounts, the bottom line is the bottom line. For any business, there are two ways to increase your profit margin. You either win more business and get more customers. Or you slash your costs right down to the bone. But when pricing is so cut-throat, reducing costs may be the only way to compete.
Here we’re going to look at a few of the ways you can cut costs that you may have overlooked. Check this out.
Slash Your Travel Costs
As companies become more global, they’re reaching out to buyers abroad and setting up locations in new countries. This is perfect for expanding their businesses overseas, but it’s not exactly good for their bank accounts. For many global companies, travel costs are excessive, especially when including “business” services. Flights, hire cars and hotels can quickly eat away at your profit and leave you penniless by the end of the year. So what should you do? First off, limit the number of times you travel abroad to meet a particular client to once every six months. The rest of the time, make use of the internet and use Skype or Zoom. If a client complains, just inform them that you’re too busy to deal in person right now. After all, you probably are! www.businessinsider.com/ has more information on reducing business travel expenses.
Cut Out Unnecessary Overheads, Including Your Office
Offices aren’t what they once were. In the past, they used to be a hub for reputable businesses of all stripes. But today, upwards of 30 percent of small businesses don’t bother with one. The reason? Cost. Once you start investigating the commercial office space market, you soon realise how expensive they are to rent, fit out and run. Many small companies can’t be bothered. Instead, they use sites like www.yourvirtualofficelondon.co.uk to bypass office costs. Essentially, they rent a virtual office that forwards all their mail to some cheaper address, like a home office.
Change Your Marketing To Focus On Existing Customers
Marketing to new customers is an expensive business. You’ve got to find them first. And then you have to craft a message that they will find interesting. It’s easier said than done, and often very expensive.
There may, however, be an alternative route you can go down – one with a bigger ROI. That route is advertising to your existing customers. Your current customers already know you, and they know that they can get a quality service from you. What’s more, these clients have already shown an interest in your product before. This indicates that they’re interested in what you’re selling.
If you’ve got an email list of existing customers, use this to your advantage. Send an email out detailing a new promotion or offer you have running. Or use email to remind clients that they can get a lot more value for money if they upgrade their existing service with you.