Cutting Business Costs, Part 2

As part of an ongoing series on how you can cut business costs, we’re sharing a few more tips. Finding the right balance between what to spend and what to save is what an expert CPA can help you with.

1. ALIGN YOUR USE OF RESOURCES TO YOUR OBJECTIVE

Ask yourself, “What is my goal for my business, and how should I use my resources to achieve that goal?” If your goal is growth, you have to invest in branding, marketing and product development. If your goal is to manage cash, then focus more on shorter-term sales.

2. HIRE SLOW, FIRE FAST

It’s all in your team! First, hire slow, fire fast. The longstanding phrase stands the test of time. Second, invest in developing people who truly represent the brand by living the company values daily with your customers and suppliers. With them, co-create those values about cost and company sustainability and define exactly what living them every single day looks like. Third, model the way.

3. DEVELOP YOUR LEADERSHIP TEAM

The best way to save money as you grow is to invest in your leadership team members to help them effectively work together and build their teams in a way that drives effective planning, coordination, collaboration and joint problem-solving. Otherwise, silos will take over, which breeds power struggles, politics and blame-game behaviors, resulting in poor handoffs, conflicts and duplication of efforts, which are all costly.

4. STAY LASER-FOCUSED ON YOUR PRIORITIES

Know your priorities and stay laser-focused. Make certain that investments are made and money is spent only in those areas identified as critical to your objectives—nothing else. Temptations and opportunities to sidetrack will be everywhere. When they arise, bring your purpose forefront. Does making this move get you one step closer? If not, do not do it. Saving today means having more to go forward.

5. SURROUND YOURSELF WITH A DIVERSE SET OF PEERS

Surround yourself with a diverse set of peers who run other businesses. Peer-to-peer organizations will pair you with between eight and 18 non-competing organizations with whom you can compare best practices. It is lonely running a business, and joining a peer group gives you a trusted set of advisors you can lean on. This will save you from running into the same potholes your peers have experienced.

6. SHIFT FIXED COSTS INTO VARIABLE ONES WHEREVER POSSIBLE

Growing a business while staying lean and solvent requires taking an optimistic yet cautious approach. Find ways to turn fixed costs into variable ones. It is easy to fall into the trap of hiring too many people and inflating inventory. Look to maximize the productivity of people by putting the right incentives in place. Use artificial intelligence technology to predict patterns and manage your inventory costs.

7. LEVERAGE FREE MARKETING PLATFORMS

Building your professional brand doesn’t have to cost a lot. Leverage your free social media platforms. You can create quite a following by writing articles and posting vlogs and blogs. Consistency is key. Remember that, as you’re building your empire, you need to keep in contact with your followers. Make sure to keep up your engagement.

8. OUTSOURCE INSTEAD OF HIRING FULL-TIME STAFF

When it comes to growing a business while trying to remain lean and save money, outsourcing is important. No one can achieve exponential growth without a team. However, it is not necessary to have a full-time staff to succeed. Outsourcing through contractors and freelancers can be a great way to get the job done while not having to contend with the overhead of employee wages or other expenses.

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Source: Forbes