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Business

How to Drastically Cut Expenses in Your Small Business

How to Drastically Cut Expenses in Your Small Business


How to Drastically Cut Expenses in Your Small Business

Sources show that 82% of small businesses fail due to cash flow problems. Money problems are mainly caused by poor planning, overwhelming expenses, and low revenue.

When it comes to small businesses, every penny counts. This means making any possible cuts on expenses and improving productivity wherever possible. It is often much easier to balance the books by lowering business spending than increasing income.

To keep your business thriving, here are five tips on how to drastically cut expenses.

1. Stick to a Business Budget

Careful budgeting is crucial in managing finances. Cutting down on expenses begins by planning the available resource and predicted revenue. This gives you a clear idea of how to spend the funds that you already have and prepare for the future.

A budget is only useful if followed precisely. Practice a high level of discipline and avoid deviating from the laid-out plan. This way, your expenses will remain predictable, and you can easily find areas to make cuts.

2. Digitize Your Business Operations

Use technology to your advantage. With inexpensive and convenient technologies like VoIP and cloud computing, you can drastically cut down on communication, labor, and time expenses. You could even have virtual offices such as Hoxton Mix, and outsource work and services at relatively low cost.

Entire departments or roles can be made redundant by simply automating mundane tasks such as virtual assistance, data management, and emailing.  

3. Cut Down on Energy Consumption

The cost of energy keeps going up, and it amounts to a large portion of recurrent expenses. Find ways to reduce your power bill and bring your costs down. The cheapest way to do this is to go green.

Begin by installing solar panels to generate free electricity. You could also modify the building to consume less energy by improving natural lighting and replacing inefficient electrical systems. The initial cost of changing the energy infrastructure may be high, but it pays for itself in just a few years.

4. Ditch the Print Media

On average, an American office worker uses about 10,000 sheets of print paper every year. Now, multiply that with the average cost of paper and the numbers go way up. Sadly, most of this paper ends up in the shredder or the dump.

And that’s only looking at papers alone without the added cost of ink, printers, and other stationary supplies. Transition to a paperless work environment and make huge savings. Use digital documents on computers and smartphones instead of printed reports, receipts, invoices, and postal mail.

5. Maximize Employee Productivity

Use incentives to motivate your employees to be more productive. Introduce training, rewards, and performance evaluation schemes to boost the employees’ morale and increase productivity. Don’t waste labor expenses on an under-delivering workforce.

Try New Creative Ways on How to Drastically Cut Expenses

These five ways on how to drastically cut expenses should guide you to making significant savings on your business’s running costs.

However, don’t stop there. Find other ways to cut more expenses depending on your business model and operations. Identify any cots that the business could do without and cut them off or reduce them.  

Keep in mind that decreasing expenses requires a certain level of commitment and flexibility to cope with the changes.

Explore our blog for more business tips.

Lifestyle

Find Out What Is Fashion Marketing So You Can Cut Out The Competition

Find Out What Is Fashion Marketing So You Can Cut


Find Out What Is Fashion Marketing So You Can Cut Out The Competition

The fashion industry is massive, bringing in $1 trillion in gross revenue per year.

Yeah, that’s “trillion” with a “t.”

So what is fashion marketing? It’s the outreach you’ll need to separate your product from the competition and succeed in the most cutthroat retail industry in the world.

Here are a few tips to help you get started and get an edge on the competition.

Have a Great Product and Know Your Niche

It all starts here, right?

A lot of people sell underwear, so if you’re selling underwear, it had better have something that sets it apart from the competition.

Better materials. A great story. An amazing fit.

Whatever the product is, you need to understand exactly what you’re selling and how it stacks up to the competition – so do your research before you develop your marketing plans.

It doesn’t matter if you’re asking folks to “Click Here” to buy grillz or selling winter parkas. All successful fashion marketing starts with knowledge of the product and research on the marketplace.

That’s the first job of your newly minted marketing team (even if it’s just you!).

Social Media Is Your Friend

When looking for sterling examples of just what is fashion marketing, look no further than social media.

Facebook. Instagram. Pinterest. Even Snapchat.

The fashion industry leads pretty much all industries when it comes to experimenting with social media.

After all, social media has become increasingly visual and fashion is nothing if not aan image-first industry. Studies have shown that fully one in three consumers have purchased an item of clothing after seeing it on Instagram.

If you hate social media, sorry – it’s critical you learn to love it or hire someone who does.

Find Great Influencers in Your Niche

Speaking of people who take to social media like proverbial fish to water, influencer marketing has become a huge part of what is fashion marketing in 2017.

What is it?

Put simply, influencer marketing is when a company or brand contracts with someone who has a huge, established social media presence in their target niche to promote a product.

It’s basically a celebrity endorsement for the 21st century.

Just how important is it? More than six in 10 fashion companies made influencers part of their marketing strategy in 2016, with another 21 percent planning on incorporating it in 2017.

Don’t Forget Your Ground Game

Social media is good to talk about because it’s accessible anywhere, but the soul of fashion marketing is still on the ground.

So go to trade shows, fashion shows, and make connections.

Showcase your collection. Do a trunk show. Co-sponsor an event.

The key is to have your digital marketing game set up so that when you do face the public with the product, the conversation can continue in the digital space with website, email, social media, and so forth.

The ground game is an opportunity for people who find you through the digital space to get a tactile experience–see the product, touch the product–and also an opportunity for those who have seen the product engage in an ongoing dialogue with the brand before they buy.

What Is Fashion Marketing? That’s up to You

With this much competition, the most important thing is to stand out. Take risks.

Some brands do their marketing through e-mail only. Some do massive stunts.

Others simply stand by their terrific product, tour the country doing shows, and rely on word of mouth.

No matter what, though, you need a good photograph.

A great picture, after all, says a thousand words. And that translates to dollars.