Everyone can agree that 2020 was a tough year. For the small businesses that have made it through the COVID-19 pandemic, it is important to develop practices that will save money and promote growth in the months ahead. Due to technological advancements and improved supply chain efficiencies, there are many money saving techniques that small businesses can employ to sustain their endeavors. In this article, we will share how small businesses can save money throughout 2021.
1. Maintain a Partially Remote Office Culture
As far as recent studies show, more than half of small businesses across the nation plan to continue allowing remote options to all employees. A sizable portion of small businesses are hesitant about the effectiveness of a digital workforce structure. Even if your company wants to require employees to return to a physical environment for a portion of the time, consider nixing your lease and renting a coworking space for one or two days a week. Without having the overhead expenses of an office, you will save thousands of dollars every month.
2. Invest In the Proper Technology
Each year, businesses spend hours verifying identification documents for their customer base. In addition, small businesses are sued every year for not adequately verifying identity or enduring data breaches. In order to make sure that you do not have to release large sums of money due to a lawsuit, invest in an ID scanning software. This software will validate forms of identification and make sure that this confidential information is stored in a secure manner. Other investments that will save you money in the long run are cybersecurity platforms and inventory management systems. With these technological advancements, you can ensure that you are properly managing your digital and physical assets.
3. Partner With Local Businesses
When you partner with other local businesses, you can increase your reach while decreasing your expenses. When you partner with other business groups, you have direct access to their customer base, along with the opportunity to split the cost of marketing efforts, venue rentals, event expenses, and other endeavors.
4. Go Paperless
Although paper products may seem like a minor portion of your overall budget, you are likely spending thousands of dollars on these supplies every year. Not only will ditching paper reduce your expenses, it will support the overall sustainability of your brand. There is a huge push towards sustainability in the workplace. Adopt this trend for all billing, invoicing, and marketing efforts. These initiatives can be completed online or over the phone.
5. Alter Your Marketing Efforts
For businesses in all industries, marketing is a necessary investment. You need to develop a strategic marketing plan in order to grow your reach and expand the audience base. Unfortunately, many companies are not properly developing their marketing campaigns. There are tweaks that you can make to your marketing efforts that will save money while increasing reach. Since word-of-mouth is the most effective form of marketing, develop brand ambassadors that are incentivized to spread the word about your brand. In addition to brand ambassadors, attempt to grow social media and web presence by developing compelling content that is able to spread organically.
Even if your small business is thriving, it is important that you spend frugally in order to ensure your sustainability in the future. As we have all learned over the past year, the economy is unpredictable. By stewarding money well and developing sustainable practices, you will see growth in the future.