Save Money In your Business By Following this 3-Step Guide

Creating a sustainable and efficient business should be a priority. When money becomes an issue and less profit is generated than we expect, what’s next? How can you save your business money? The hard work and countless hours put in the business should not lead to financial concerns.

Fortunately, there are solutions. When the money in the business is placed into irrelevant areas, it is time to take the necessary steps to get your business finances back on track.

Why should your business be saving more money? The answer is simple. You will have more to invest in the areas that matter. For example, investing more into advertising. If this is the issue in your business, the wasted money can be input here instead, attracting more customers.

In addition, saving more money can bring stability to your business. While some risks are great, putting your employees at the risk of redundancy or your business going bankrupt is not ideal… So let’s start implementing these strategies as soon as possible. After all, it is better to be safe than sorry.

1) Save money by using the 80/20 rule

Let me introduce you to the method which optimises your time and gets you more income and reduce the amount of money you waste in your business. The Pareto Principle, also known as the 80/20 rule, states that 80% of the effects come from 20% of the causes.

An example may be focusing on repeat customers is a great example – did you know the revenue you will generate from your repeat customers is likely to be 16 times more efficient compared to one-time customers? This means you should be focusing on the 80% of the customers who are bringing your company 20% of the revenues. Look after your repeat customers, as they will take care of your business. If you are seeking knowledge into how you can take care of your loyal customers, read more here.

But what can you do if you have not acquired many customers in the first place? Acquiring customers can be hard, especially for a new business. The secret to increasing your current customer base is great knowledge followed by ACTION. If you would like a free resource on 11 ways to double your customer base in 4 weeks, you can access this resource here.

2) Save money by improving employee engagement 

Your employees will either make or break your business; therefore, they play a major role in determining how much profit your company makes. The key is a performance that efficiently maximised profits.

Training is vital to enable them to problem solve the best ways to save your business plenty of money- both short term and long-term. If their hard work, results and excellent attendance is celebrated, you will be surprised by how much productivity and engagement will increase. For useful ways to celebrate your employees’ hard work, visit here.

Here are some other ways high employee engagement will reduce the amount of money wasted in your business:

  • Employee engagement reduces recruitment costs – if you take the effort to make your employees feel values and appreciate their work, your employees are significantly less likely to leave your company, hence reducing turnover costs
  • Higher employee engagement reduces sick leave – a study shows that employees who consider their workplace mentally unhealthy take four times as many sick days than those who consider their workplace mentally healthy

–3) Wasted meetings = wasted money

How many hours a week do you and your employees spend in meetings? While meetings can be great for getting the team together and maintaining an effective business culture, oh, they do take a lot of your time and are expensive. A lack of organisation and lack of participation in meetings are common, and this does not play a benefit in any way. Perhaps sending an email or reducing the time of your meeting to only cover essential points would work better.

When you are next planning on initiating a meeting, ask yourself, is this meeting necessary? Perhaps an alternative method of getting your points across may be more time and cost-efficient. If a meeting is essential, learn how to get it right here.

Change moves you forward, and it is time to make this change now. If you need support or clarity with any of these essential actions, do not hesitate to email me at stevegaskell@vsccoaching.com.