How Clever Cost-Cutting Can Supercharge Your Business Growth

How Clever Cost-Cutting Can Supercharge Your Business Growth
  • Opening Intro -

    Savvy business owners are always on the hunt for innovative ways to save money.

    The leanest and most efficient businesses - whether they're small or not - stand the highest chance of becoming the most profitable in the long run.

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This happens when the business’ decision makers focus on not just spending less, but also on doing more with the resources they do have.

This, in essence, is expense optimization, a two-tiered approach that results in less money going out the door while also enhancing productivity throughout the organization. Because running a business involves making cost-based decisions on a routine basis, it can be easy to lose sight of where the most money can be saved in the effort of improving the business.

To help, here are some of the most impactful ways that reducing costs can serve to drive business growth.

Embrace Outsourcing

An entire library could be filled with books written on the topic of bettering your business through outsourcing. Even functions that some business owners might consider ‘core’ to their companies could be candidates for outsourcing, at least in part.

One common misconception about outsourcing is that because the work is being done outside the walls of the organization, there is less control of the quality of outcome.

This might have been the case 15-20 years ago, but it’s much less of a concern today. This is due to the sophistication of companies built with the sole purpose of providing professional services meant to be outsourced.

Here are two examples of smart outsourcing: using Professional Employer Organizations, or PEO’s, and hiring freelance talent for special projects. Let’s look at how each of these could help your business.

Tapping the Power of PEO’s

Professional Employer Organizations, also known as employee leasing firms, often provide a full suite of HR-related services that are tailored to a specific workforce. These services can include employee training, recruitment, benefits administration, retirement plan management, and more. In many cases, a good PEO can suddenly become the entire HR department of a business, removing an immense burden from within the company.

What’s more, the costs involved in hiring a PEO don’t have to be exorbitant. In fact, many ‘core HR’ functions can be offloaded to a qualified PEO for as little as a few hundred dollars per employee, per year.

Freedom through Freelancing

In a recent report from McKinsey and Company, it was revealed that as much as 30% of the US workforce engages in some form of independent work. Even though this freelancing trend has slowed down in 2018, the value of outsourcing technical work, in particular, has not lost its allure for companies trying to do more with less.

Looking to freelancers as a source of talent can breathe new life into stale projects, give your payroll budget a break, and free up other resources to focus on other tasks. The beauty of freelancing lies both in its convenience and its accessibility – whatever human resource your company may need, there is more than likely a stable of qualified freelancers at the ready.

Perform a Tools and Technology Audit

When CFO’s sit down to evaluate where money is coming from and where it’s going, they may be so focused on the numbers that they’re not always able to identify areas where modern technology and specialized tools can reduce expenses. Some of these deficiencies can be found in the most obvious yet commonly overlooked places, like a company’s internet service. A quick evaluation of the least expensive internet providers in your area could yield significant savings while also improving the uptime and reliable connectivity of your workforce.

During the process of performing a tech audit within your organization, don’t leave anything off the table. If there’s a specialized, expensive piece of software that is critical for the functioning of your organization, for example, think critically about its role within the company. Explore alternatives that might have been developed in the months or years since the decision was made to use this particular tool. Apply this same, disciplined approach to every other cost center within your business, and you’ll likely uncover multiple opportunities to spend less while accomplishing more.

One of the best ways to know if you’re taking the most advantage of the tech and tools available to you is to look at your competitors. What are they using? Where are they getting it? How are they succeeding? Which technologies are they embracing that are helping them to excel in certain areas? Often, learning from the successes of who you’re selling against can be just the ‘shot in the arm’ your company needs to make a few lasting, positive changes.

other valuable resources:

Conclusion

Businesses of all sizes can benefit greatly from cost-cutting, but not all of them do it in a way that actually makes things better. By applying the tips outlined above, you can start doing more today to ensure the sustainable success of your business, tomorrow. To get the absolute most out of the expenses your business incurs, make sure that every dollar is serving you in some way, and that there’s no better way to get the value out of the investments you make in your company.

Author Bio
Kevin is the founder of Vast Bridges, a lead generation and customer acquisition firm focused on helping companies grow. In his role, Kevin gets to follow his passion for developing and implementing a strategic business for different companies, something that has allowed him to become an expert on the different ways of growing a business.

Image Credit: Pixabay

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