Six Practical Money Saving Tips and Ideas for Your Family Business
Saving just a small amount of money here and there can really boost the bottom line of your family business. If you’re tired of hearing abstract advice then read on for straightforward, practical tips to help cut down on costs and maximise your profit margins.
1) Switch to PPC Advertising
Pay-per-click (or PPC) advertising is far more cost-effective than traditional ad campaigns because it allows you to target a more precise audience, helping you to squeeze more out of your marketing budget. You also only pay for the clicks you receive, rather than the number of impressions the ad gets, so this really helps maximise your ROI.
2) Outsource
Outsourcing allows you to increase productivity whilst keeping team costs low. For one thing, there are no pension contributions, sick leave or vacation time to worry about with freelancers or contractors. Furthermore, outsourcing more of your work allows you to convert fixed costs to variable costs, so you pay for the hours you need in accordance with the volume of work. This makes it easier to save money during quiet periods.
3) Negotiate with Vendors & Suppliers
A vendor’s named price isn’t necessarily the final word on what you will pay them. It’s always worth attempting to negotiate better prices, because you may end up saving yourself hundreds of pounds or each month!
4) Seek Cloud Based Solutions
Cloud based software can save you a significant amount of money by eliminating the need to purchase, maintain and upgrade expensive hardware. Cloud based software is also easily scalable and allows you to maintain organisational agility, and it’s a big space-saver, too.
5) Go Remote
Telecommuting can be a huge money saver for family businesses. When team members work from home, businesses instantly save money on utility bills, office supplies and even hand soap and toilet paper. By encouraging some team members to go fully remote, businesses can also move to smaller office premises and thus save even more money on rent and furniture. Alternatively, you could allow all team members to work flexibly and introduce “hot desking” rather than having a designated desk for every employee. In fact, research by Forbes found that by allowing staff to work remotely 50% of the time, companies saved an average of $11,000 per year per employee.
Furthermore, allowing remote working can allow you to increase productivity. There’s a wealth of evidence to suggest that remote team members are more productive. A study by Atlas Cloud found that remote workers put in an average of 26 extra days over the course of the year, which accounts for a whole months’ worth of added productivity. Just ensure that remote team members are getting enough breaks from their work too!
6) Hire on Mindset, Not Just Skill
You can train brand new team members but it’s very difficult to fix a negative mindset. Hiring smart, eager-to-learn graduates is a great way to attract talent to your company whilst paying an entry-level salary. Furthermore, you won’t risk hiring team members who are set in their ways and you will be able to train them to do things exactly as you like them with minimal resistance.
Summary
By employing these tips you can cut down on costs and boost your bottom line without making huge sacrifices that could reduce your output or antagonise your team. Saving money for your family business is about finding smart solutions rather than hacking away at your budget, and these tips will help you to do just that.