It has become a challenge for every business to reduce the cost of their business without compromising quality of services rendered to their customers. However, if you ask any entrepreneur, they all deep in their hearts have a longing wish to have reduced working cost for their organisation.
The company which smartly combine technology and manpower, get enable in taking decision in adapting new improved methods to reduce the cost of business; will definitely generate a win-win situation by decreasing the operational cost for their small businesses.
Here are 9 tips mentioned which can help top management to reduce cost of business:
1) Look for value for money while selected low cost software and apps: When you strive to control cost, you should look for technology which should be reliable, reduce paper work, easy to understand and implement. We live in gadgets world. Many times It’s equally important for you to be tech savvy. This will help you in knowing which gadget, tool or app is best for your organisation working. Better to operate through technology rather than file and paper work. SalesBabu CRM is one of the best cost effective and integrated software solutions for small and SMEs which can be used to optimize your business processes. SalesBabu CRM provides end-to-end business management and sales optimization features which can be easily be integrated with third party vendors and customised as per the need of the small scale organization.
SalesBabu CRM provides various features of Lead management, quotation and sales order automation, inventory management, after sales support and more which is opt for a small scale organization to leverage most out of software solution for organising overall business in minimum cost.
Read More – Win more Customers with Lead Management Software
2) Optimal utilization of resources: Employees should be knowledgeable about the technology and method you select for your organisation work procedures. They should be trained and made responsible to best utilize resources made available to them, such as internet, phone, fax, photostat, printing paper, cartridge, electricity, stationery etc. Though the cost per units turns out to be very less but if the wastage is calculated on an annual basis then definitely the figures can make a difference in the cost and profit margins for any organisation.
SalesBabu CRM software for small business provide many customised features like dashboard and activity management features which can be used to analyze your internal sales and employee performance by tracking individual work times on a regular basis which helps in utilizing human resources to the fullest.
Read More – Tips to Reduce Cost in Small Business
3) Audit your processes and mode of operation: It is possible that you can outsource some services rather than having in-house manpower. You can look for re-engineering some processes, where you see process are not delivering output as expected. Re-strategizing: look for quarter figures and prepare comparatives this will help in re-strategizing the departments or processes.
Inventory management forecasting and automated tracking mechanism help in understanding the stock requirement for fulfilling the demand and supply chain and regular audit of the warehouses and data records of the organisation helps in understanding the pain areas of the firm and take productive measures to resolve them.
SalesBabu CRM Software for Small Business provide one click MIS and analytically Reports, which provide strategic data for quick and correct management decisions. These inbuilt and custom reports help to analyze various parameters of business like customer shopping trends, previous purchase history, market trends, ongoing product requirement in the market which help to create more strategic plans for business operation and management for profitable business model.
4) Online options: From your information e-bookings till your negotiations on teleconferencing. For every assignment there is an online option. Go online you will save a lot of travel expenses and your manpower requirements too can be curbed. You can ask your employees to work from home. Tons of office activities can be performed from remote locations just by being online. You can virtually connect to all your employees anytime and anywhere in the world.
Mobile sales app and web based application in SalesBabu CRM help in providing services for business management on internet based smartphone and gadgets which can optimise the workload of every employee and allow them to work from anywhere and stay connected to the organisation data at all times without any location restriction.
Sales and marketing team can use these flexible options to create on the move quotations, sales orders, marketing campaigns and presentations which can shared with client at realtime and seek their suggestions and make required amendments for sales closures. Also, customer service agents can share their live location with these mobile sales app can help in resolving tickets faster by automated assignment of ticket by nearest proximity to the client.
These proactive features help in not only saving time and money for the organisation but also stay connected to customers at all times and provide round the clock support system for a long lasting relationship with the clients.
5) Make a budget and follow that: Yes, it is a lot easier to say than to practice but there are people who have made provisions for all kinds of contingencies in their budget, so that the budget can actually work as per the budget allocated and allotted to all the departments. Predictable budgets help utilizing funds more precisely.
So this is not rocket science, some simple steps and you can see the difference in the amount of profits. This can be utilized for your employee benefits and welfare. You can even ask your employees that all the money saved due to optimal utilization of resources and by adopting effective and cheap strategies that money can be given back to employees in the form of gifts or may be incentives.
6) Lower financial expenditure:
- If possible consolidate the insurance policies or the bank accounts.
- Do not take on unnecessary debts. Do a thorough cost-benefit analysis and future forecasting while considering the expansion of the business. Excess debts will affect the rating of the company, interest rates and also will lose the ability to borrow in the future.
- Save the money on insurance by comparing it to other providers for the most competitive rates, then ask your current lender or insurance provider to match the rate.
7) Focus on quality: Quality will sell whether in the form of services or products. A satisfied customer will increase sales by referring to others and repeating the purchases. Higher quality and a solid reputation will allow you to charge higher prices, which will equal the high revenue and healthier bottom line.
8) Narrow your focus: As a small business owner, narrowing the focus of the business will be one of the most effective strategies to improve the bottom line. By limiting the types of services a business owner will offer and the projects he will accept, the business owner will be more productive and will be able to produce more high-quality work. Another way to narrow the focus of business is to subcontract. Other than turning away the business, maximize your capacity by subcontracting pieces whenever it is possible. More projects are equal to more revenue, while subcontracting equals lower expenses.
9) Make the most of your space: Analyze your current use of the physical space. Overflowing of storage, too many supplies, piles of paper files, and insufficient place for the furniture and equipment are very common space wasters. Centralize the different departments of your business. Use most of the spaces for dual purposes. For example, a meeting room can be doubled as a break room or also a storage room which holds all the copies and fax machines, etc.
Life is easy, it is up to us how to handle and channelize things around us, weather in organisation or in life.
SalesBabu CRM is a one stop solution for optimizing resource utilization in the firm and reduce any extra expenditures and wastage by organising overall business processes and administration sales life cycle closely for a more productive and efficient staff.