7 Creative Ways to Save on Operating Costs

It doesn’t matter if you’re looking to increase profits or save money because profits are down, cutting costs has been an essential point of focus over the last year.

Many small businesses have been making efforts to get creative in maximizing profits or simply continuing operation given the circumstances of the COVID-19 pandemic. If you’re looking for other ways to save on operating costs, we’ve compiled a list of seven creative ways to save on operating costs.

1. Internet Marketing

While there are aspects of internet marketing that cost money (it can add up quickly), you can still market your business online at very little to no cost at all. Yes, maintaining a website does cost money, but driving leads to your website can be free.

Discover where to practice search engine optimization (SEO) techniques to improve your search engine results’ visibility. You will find that it does require website maintenance and content marketing to take a proper and lasting approach to SEO.

Utilize social media to drive leads from potential customers. It does take time to manage a social media account, but the report itself and the content created are free. You can build a following using creative social media posts that catch the eye of your customer base.

Once you have built your consumer base, you can start email marketing with free services like SendinBlue, Benchmark, OmniSend, and others. Be aware that some email marketing services, like MailChimp and MailerLite, are free until you reach a certain subscriber threshold or quantity of emails sent.

2. Reduce Inventory Levels

Don’t spend money on warehousing a large inventory. The product that sits on the shelves is a product that is costing you money. While it’s nice to have stock readily available for quick fulfilment, there’s a good chance you won’t use all that you have on hand.

Any product that doesn’t get purchased is taking up space for a product that does move and eating cash flow because it’s practically gone to waste. Limit the number of items you keep on your shelves to lower your operating costs and save money now and in the future.

3. Hire Interns

Interns are a great way to find cheap or free labour. Your business can quickly bring in a fresh set of eyes to see how you do business, get the latest information on business operations and marketing techniques, and provide a pool of potential entry-level hires.

It’s essential to have a plan for your internship program to ensure that you’re providing a benefit to them and future interns. Utilize the extra hands to increase productivity and ensure that you can give feedback on their work.

4. Software License Management

Whether you have a large team of 100 to 500 employees or just five people in a small room, it can be challenging to keep track of software licenses. Whether you’re using the Microsoft Office Suite, Adobe Creative Suite, or anything else, a software licensing management system can help you monitor your licensing to ensure continued and seamless productivity.

A lapse in software licensing can lead to a break in production, which will cost you and your employees money. You can have your IT team run your software license management system or outsource it to a third party if you don’t have an in-house IT team.

5. Cut Down on Travel

Even when it’s necessary, travel is expensive. With costs like flights, rental cars, and a per diem, it all adds up quickly. However, technology makes it easier to avoid costly business trips.

Video conference calls can be done at very little to no cost now, making it easy to create a virtual meeting with business partners and clients alike. Use the money you save from cutting travel to invest in your business and your employees. It’s cheaper to run highly productive equipment than to pay for monthly or quarterly business trips.

6. Let Employees Work Remotely

With an office comes loads of overhead. Things like utility bills, maintenance costs, equipment, rent, or mortgages can add up and cut into your profits. Employees who work from home can help you save on all these costs.

While working remotely isn’t for everyone, you can help your employees thrive in their homework environment and provide high productivity levels by giving the appropriate tools and training. Furthermore, the 2020 COVID-19 pandemic has proven that remote work is more practical than many employers initially thought.

7. Conserve Energy

If you need to maintain an office space, make an effort to save energy. From turning off lights in unused rooms to getting a smart thermostat, you can cut costs here and there to save money.

A more energy-efficient business is a frugal business. Even if it means more upfront costs from buying things like solar panels or a smart office system, you can save money in the long run by cutting your energy bill.