In any company the focus is often on improving profits, but what about the other necessary task of cutting expenses? Often giving your bottom line a boost can be more about eliminating unnecessary costs than increasing revenue, but a lot of corporations get stuck in a rut of continuing to let unnecessary expenses slip by. When that happens, they become an ingrained part of your budget, even when they don’t have to be.
The following are some places that most businesses could cut expenses right now, even when they’re already operating on a relatively tight budget.
It can get too easy for companies to pay very little attention to their employees’ travel spending and expense management habits. A lot of things tend to slip through the cracks here, even when there is a strict policy in place.
It might not be that these fraudulent expenses or errors are even amounting to a lot of money every year, but it’s the overall concept of letting them happen that can lead to other “slip ups” or that can create a culture where people feel like it’s okay to break the rules.
Eliminate this with software that will allow you to more carefully enforce expense policy compliance, and save money in the process.
While you’re at it, you might think about moving to travel reward credit cards to manage your business expenses and also cut your travel costs.
If you’re doing your manufacturing overseas, is it the most budget-friendly option? It might be time to reevaluate and consider if your costs wouldn’t be lower if you were to bring your manufacturing back home.
Offshore manufacturing companies have been faced with significant wage increases that are on-par with the U.S., and their energy costs are also growing.
You may find that bringing it back onshore could lower your costs and also help eliminate some of the barriers that come with freight and inventory costs, time zones, and other obstacles you face when your manufacturing is happening overseas.
While you might reconsider outsourcing your manufacturing, you can actually go in the opposite direction with some of your talent. There are marketplaces that provide easy access to talented freelancers and contractors, so if you have a project coming up that requires a particular skill set, consider going this route.
You’re going to save a ton in overhead costs, have access to a greater talent pool than you would otherwise, and you’re also going to have an easier time finding someone with specialized skills.
Modernize Your Marketing
Finally, is it time to change the way you market? You want to make sure you’re following modern strategies focusing on digital and do an audit of all of your forms of paid advertising to see if they’re working.
This tip can also tie in with one above. Outsource your marketing work to a professional, rather than trying to do it in-house. A lot of today’s most effective marketing and advertising tactics also happen to be inexpensive and efficient.