How To Cut Costs For A Small Business

How To Cut Costs For A Small Business

on Dec 17, 2020 in Small business

Running a small business is tough in more ways than one. Statistically, businesses are at their most vulnerable in the first three years; if you are at this stage right now, you might be feeling the pressure to pull through. Particularly during 2020 with the weight of the coronavirus pandemic on the world’s shoulders, it has been even harder for small business owners to do what is needed to stay afloat. 

In this article you will find three established top tips on how to cut costs for your small business without compromising your company’s integrity or brand. Let’s get to it!

Strategy #1: Automation and Outsourcing

One strategy for cost-cutting that many small businesses are undertaking is using automation to their advantage. Automated services are increasingly being used in lieu of hiring expensive staff which will eat into your budget. 

The most popular form of automation is automated IT services. Outsourcing your IT might seem expensive, but a comprehensive cloud hosting platform will cover every aspect of your IT needs, without you having to hire a full time IT staff. Plus, outsourcing automated services utilizes the skills and facilities of a larger company that can easily take care of the needs of your small business.

Strategy #2: Hire Freelancers

Hiring freelancers is something that is often considered expensive, but can actually be a much more cost-effective alternative to full time staffing and agencies. Freelancers, particularly those who are new to the game and have talent to spare without overcharging, can help improve your business without tying you to an expensive contract. 

Freelancers could be used to write blog content, design your site, to provide business bookkeeping services, as consultants and in many more areas of business. It has never been easier to find freelancers on sites such as Linkedin and Fiverr; for your small business, hiring freelancers could be a game changer.

Strategy #3: Social Media

Social media is a phenomenal tool to use as a small business that is looking to cut costs. You can use social media totally for free (although many brands pay for advertising and sponsored posts), growing your brand and following without spending a cent. Cultivating a social media strategy is a hugely important part of marketing your brand in 2020 and beyond; not only this, but it is one of the only free tools left at a small business’ disposal. 

How can you use social media to impact your small business? Let’s take a look at a few ways.

  • Giveaways. Giveaways cost brands very little and can grow your follower base by a long way. This will only increase interactions on your social media site, leading your brand to becoming better known and increasing revenue.
  • Building a recognisable design. If your business’ social media profile is unique in that it is recognisable as its own style, you are bound to cultivate a larger following. 

In conclusion, cutting costs for small businesses can be difficult, especially in the time of the COVID-19 pandemic. However, using these strategies, you can begin to see the light at the end of the first few years!

Image source: Pexels.com

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