The most important thing when reducing spending is doing it the right way – here are a few tips on what can be done to optimize company costs and actually help you increase your performance on all levels in the long haul.
Automate to optimize company costs…
With the rise of AI and all things tech, one would be simply naive not to give it a try. Start with going paperless and moving your mundane admin tasks to the cloud. Opt for replacing paper invoices with digital ones. Get yourself and other decision-makers in your company digital signatures – this way you can always approve a document without mailing it or – in urgent situations – incurring other shipping costs.
Do not forget about customer service. It is vital to be able to offer your users support in problematic or confusing situations. How about a chatbot? You will save a lot just by using an automatic software instead of hiring a person dedicated to answering phone inquiries. A 24/7 service dealing with your customer can create a lot of added value to your business by helping with your company’s image.
A well-timed email campaign based on automated prompts can also be an effective tool in reminding your customer base about your services, or telling them about new ones. Automated updates can be cyclic and help you make more simply by growing your audience.
… but stay human
It is a cliche, but your business is represented by your approach. By all means stay present and relevant. Even in using artificial intelligence, advanced automation instruments and cost-cutting tools, you are the face of your business. Be professional and friendly, as it always goes a long way. AI still has not learnt how to be empathetic, but you can be – so make it your forte. Combined with optimizing company costs, this approach might truly feel like striking the right business chord in your company.
Hire freelancers to optimize company costs
How to save on office rent, administration, training and employee holidays? Find subcontractors! Hiring freelancers is an excellent cost-optimization solution for many kind of businesses, for instance – translation agencies. Depending on your needs you can outsource web design, copywiriting, graphics, IT tasks and more. Hiring freelancers is also a great solution if you have a small marketing budget and can’t afford to work with a bigger digital agency.
Apart from the reasons listed above, you will pay a freelancer only for the work done. Consider if you need a full-time employee to write copy or do your accounting. If not – look for a trustworthy and diligent freelancer to do the required work. Or maybe you already have someone in mind? A freelancer will get the flexibility that they enjoy, while you will still have the work done by a professional.
Useme can help your business save money with regards to already established business relations with freelancers. If you have subcontractors whom you work with on a regular basis, Useme is perfect for dealing with keeping accounts, storing invoices and easy access to project history, as well as assigning new gigs. Using the Useme platform to navigate your cooperation with freelancers guarantees lower expenses for the employer. In this scenario, there is no need to sign a job contract with the subcontractor. The freelancer also benefits, as they get a higher payout. Consider the example below.
Anna is a polish graphic designer who wants to cooperate with Va-Va-VoomX – a polish startup in need of Anna’s skills. The company is considering three ways of cooperating with Anna:
- a standard job contract
- a B2B contract
- Useme
Va-Va-VoomX start with the budget of 10,000 PLN, but if they go with option a. – they will have to cover Anna’s social security, increasing company costs by an extra 2,048 PLN. After all the necessary reductions, Anna will receive 7,147 PLN for her work.
In option b. Anna handles social security and taxation costs. She will also have to cover accounting and billing costs. Her final remuneration is 7,006 PLN.
By going with Useme – option c. – Anna’s extra costs amount to only 600 PLN, and her accounting costs stay the same as in the B2B situation – 200 PLN. Her paycheck will be the highest out of all three options – 9,200 PLN, and Va-Va-VoomX will avoid incurring any extra costs.
Internet platforms offer access to freelancers looking for impactful gigs. Useme is a website that makes searching for freelancers and outsourcing work super easy. They offer their services at competitive rates, especially when compared to full-time, in-house specialists, so using freelance contractors is definitely helpful if you want to optimize company costs.
If you decide to use Useme, your business will receive a VAT invoice from the platform, which comes with many benefits. So how does it work? A contract is made between Useme and a freelancer. Once the freelancer completes the work, it is resold to you – the business. It is a simple sales and purchase agreement between Useme and your company and as a result a VAT invoice is issued.
Do not underestimate analytics
These days we can measure anything: user responsiveness, customer churn, average order value (AOV). Pulling the right data can easily help you optimize company costs. Yes, you might have to invest in an analytical tool that gives you proper insights, but some free ones can also do the job. If you notice that your newsletter is not reaching your audience, you might want to unsubscribe from your email marketing platform and try other, often less expensive, marketing techniques. The same way, if after examining your AOV you realize that your customers only want to buy a certain type of product, you might stop investing in developing other unpopular ones and in this way stop generating sunk costs. Not only analyze to stay wise but compare your findings with widely available business statistics.
Always (re)negotiate
Do not think of costs as forever-fixed amounts and regularly get in touch with your vendors and contractors to renegotiate their rates and fees. These may include for instance: Internet host providers, sales platforms, payment operators, and other suppliers. Keep an eye open for finding a better deal at their competition and use it as leverage in your negotiations. It can prove to be a great tactic if you want to optimize company costs. Obviously a trustworthy business relationship has a lot of value, but who says it has to be more and more expensive?
DIY is the way
You can actually do some things related to your business yourself and not pay a dime! Setting up your website or professional blog can be done by using online open-source software – if you are just starting out, elaborate works around your online domain are not yet that necessary!
Another way to optimize company costs is you doing the graphic and design works. Whether these are social media posts that need graphics or banners you create to draw attention to your business – look for free online tools that offer templates which can be adjusted to your needs. These days it is all intuitive and easy to use, and in the end you will have set aside a penny or two.
If you can do something yourself, just do it! After all it is you who understands your business best.
