If you’re not careful, certain expenses can end up eating away at your businesses' hard-earned profits. As VAR business owners, we should always be on the lookout for smart ways to cut costs, as long as the quality delivered to our customers remains the same.
The good news is that using the right tools; it’s possible to implement a few changes that save your business a few dollars while also making life easier. You might even find that the quality of your business improves once you wave goodbye to those stresses about unnecessary expenses.
Work Smarter, Not Harder
Staying productive and organized can sometimes feel like a challenge, but there are plenty of ways you can streamline all those admin tasks that end up eating into time you could better use elsewhere. Take invoicing, for example. If you’re still sending paper-based invoices, it’s estimated that in terms of processing costs, these can end up costing your business $30 each.
By switching to an accounts payable automation tool, you can reduce those processing costs by up to 93%. Plus, you’ll also save money on the costs of paper and postage. Automating systems like invoicing frees up more staff time for meeting other goals, like offering fantastic customer service. Switching to a cloud-computing service like Amazon Web Services is another example of how you can save money and improve performance.
Shop Around For Suppliers
It’s worth spending some time figuring out all the supplies and products you use to keep your business’s back office running smoothly. Things like office supplies, cleaning products, and anything else that doesn’t affect the service or product you sell can be added to your cost-cutting list.
Look into lower-priced suppliers, consider buying in bulk, or even ask your existing suppliers if they’d be willing to offer a discount. If your regular supplier knows you’re shopping around to try and cut costs, they may well be happy to discount their product rather than lose your custom altogether.
Save Money On Your Energy Bills
You may be able to make significant savings on your energy bills by taking advantage of incentives offered either by your state or the federal government. The Database of State Incentives for Renewables & Efficiency (DSIRE) is a great place to start to see which incentives or policies may apply to your business.
Switching to more environmentally friendly energy sources also can have the added advantage of appealing to your customers. Many people will now make purchasing decisions based on a company's green credentials.
Allow For Employee Progression
Finding the right employee for the proper role can help your business achieve the gold standard of cutting costs while maintaining or increasing your business’s quality. It might sound counterintuitive to talk about investing in training for your employees while also cutting costs. But in the long run, this strategy can really pay off.
If you have an incredible employee you’d love to keep hold of, then investing in training, so they have the right skills to progress within your company is a great business strategy. You’ll save both time and money by not having to recruit a new senior member of staff while also feeling confident knowing your existing employee already fits within your company ethos and can hit the ground running in their new role.
Not Just A Once-Off
Working out how to save your business money without compromising quality shouldn’t be something you only do once and then forget about it. This should be an ongoing part of your business management. Keeping an eye on all the factors we’ve mentioned above, as well as anything else you’ve identified that could save you money, is something every business owner needs to keep at the top of their to-do list.