Did you know that a healthy cashflow is a leading asset in any SME? A positive cashflow can be achieved by identifying where money is wasted, then cutting back on those things. Doing so, could drastically influence your long-term profitability and growth. Try our cost-cutting tips to help save money and boost your cashflow.

 

CONTENTS

Reasons why your business needs to save money

• Straight up, it improves cashflow
• Saving money helps you plan and prepare for emergencies
• Having that extra bit on hand can help you seize opportunities
• It will also give you greater financial security and peace of mind

 

Ways in which your SME can cut costs:

• Tip 1: Save on utilities
• Tip 2: Save on telephony bills
• Tip 3: Go paperless
• Tip 4: Make the most of free or low-cost technology, and AI
• Tip 5: Invest in your team
• Tip 6: Introduce hybrid or remote work
• Tip 7: Market your business on social media and via email
• Tip 8: Collaborate and share resources with other SMEs
• Tip 9: Negotiate with suppliers, or switch to new ones
• Tip 10: Buy second-hand

 

But first, let's get you motivated with these saving benefits.

 

Reasons why your business needs to save money:

• It improves cashflow: A negative cashflow is the number one reason why some SMEs don't make it. Without any wiggle-room SMEs are forced to take out expensive loans or pass on opportunities for growth when they come along. Saving helps to bolster cashflow so your business can succeed.
• Saving helps you plan and prepare for emergencies: What happens during a month when sales are slow, or an unexpected event affects your output? You need savings to fall back on.
• Having that extra can help you seize opportunities for growth: If you have savings, you have options. You can tackle an opportunity or reinvest in the business.
• It gives greater financial security and peace of mind: Business owners with savings have one less thing to worry about.

 

10 Ways in which your SME can cut costs:

Tip 1: Save on electricity

Make use of energy-saving measures such as switching to energy-efficient lighting, using power-saving settings on computers and office equipment, and installing programmable thermostats for climate control.

 

Tip 2: Save on telephone bills

Regularly review what you are paying for your telephone bills. Consider smaller packages or switching to other providers to get better deals. Unfortunately, telephone bills are the one thing that’s up one month and down the next, making it hard to budget accordingly. However, with Hosted PBX in the Cloud by Domains.co.za you can get UnCapped calls for a fixed monthly price. And that's just one of its 100+ features…

 

Tip 3: Go paperless

Aiming to go paperless is not only good for your pocket but it is good for the trees too. Plus, if all your files are accessible in the Cloud, it could streamline the business and improve productivity.

 

Tip 4: Make the most of free or low-cost technology and AI

Times have changed. With the help of a website builder like our Site Builder you can create your own website. Not sure where you'll get the content from? No worries, just ask advice from ChatGTP with well formulated, relevant questions. Free or low-cost tools, applications or artificial intelligence is making it easy to get professional tasks done, saving time and money.

 

Tip 5: Invest in your team

What if you had an employee with an interest in accounting? Or a salesperson with a knack for HR? Send them on training. Enhancing the skills of your employees can lead to increased productivity and efficiency, not to mention reducing the need for external contractors and consultants.

 

 

Tip 6: Introduce hybrid or remote working conditions

While hybrid or remote working aren’t feasible for every type of company, it can save money for those that can. You'll need less office space, utilities, etc. and reduce cost to company as a result. Consider using online collaboration tools and video conferencing to maintain productivity.

 

Tip 7: Market your business on social media and via email

Compared to traditional marketing techniques, digital marketing is more cost-effective. Digital marketing can also be conducted in-house, saving agency costs. Create targeted social media and email marketing campaigns to ensure you reach your intended audience.

REMEMBER: Critically track every rand you spend on social ads and ensure that you have set it up correctly and have a capped spend. This way you can see what worked and what didn't and re-strategise.

 

Tip 8: Collaborate and share resources with other SMEs

What if you and the business next door could share resources, perhaps a cleaner, or a generator? Asking questions like these and brainstorming them with another company (nearby or elsewhere) could almost certainly lead to a collaboration of some sort, which could save money. Be resourceful!

 

Tip 9: Negotiate with suppliers, or switch

Get better at haggling and negotiate smarter deals or discounts with your suppliers. If they can't offer you a better deal but someone else can, consider switching. Or alternatively, investigate whether it would work to consolidate orders and buy in bulk.

 

Tip 10: Buy second-hand

New isn't always better. Certain things like desks, chairs and certain office fixtures can be picked up affordably and in excellent condition second hand. Even some equipment can be bought far more cheaply this way. Just make sure that whatever you buy is in good working order and comes with a service record or get a technical person to do an extensive check on equipment before you buy.

 

KEY TAKEAWAY: If you don't plan to save money, you won't. Make saving a priority and always aim to cut back on unnecessary costs where possible. These savings can help your business grow and become more profitable in the long-term. Make a budget and stick to it. However, never ever try to save money if it could compromise the quality of your efficiency, products or services.

 

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