If you are looking to improve the profitability of your business, you might need to increase your income or reduce your regular expenses. If you are operating in a competitive marketplace, you will have to step up your game and find ways of cutting your costs without compromising your productivity. Below you will find a few tips on how to get started.
Marketing
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You can automate your entire marketing if you invest in the right software. Instead of employing an outside contractor, you can use social media promotions and even schedule your posts using Buffer or Hootsuite. Online marketing is much easier to measure than traditional methods, and you can tailor the messages to the needs of your audience, while making adjustments to improve your results and cut the costs.
Fleet of Vehicles
If you offer delivery for your customers, chances are that you will have to pay for maintaining your fleet and employing drivers. Work out whether or not it would be worth to outsource the delivery and cut the fuel and insurance cost of your vehicles. You might also find it cheaper to pay your employees a mileage cost for using their own cars than providing them with a company vehicle.
Customer Service
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You can automate some of the customer service tasks and save money. There are plenty of great customer management software that can be implemented in your website, so you only have to monitor the process, instead of following up queries or posting orders manually. You can ask for feedback through the system, reward your loyal buyers with discounts and gifts, calculate the value of each customer, and improve your site according to what your clients are telling you.
Outsourcing
While outsourcing might be a good idea and can save you money, it is not always the best solution. You don’t want a call center to deal with your customers, just to save a few pennies. While your site can take care of some queries, you have to make sure that you have engaged and professionally trained personnel dealing with the core business processes, or you will end up losing clients and business partners and increase your expenses.
Equipment
If you are just starting up, and have a limited budget, you might not want to stretch your budget. Instead of spreading yourself too thin, you can search for machinery or trailer auctions nearby and cut the cost of your manufacturing equipment and commercial vehicles. Likewise, you might not want to get the latest office computers and printers when you start up; get used ones and change them once your business has turned a profit.
If you want to succeed in your new business, it is important that you find the right balance between outsourcing and automation. Use the latest technology to improve your customer service and management, but don’t spend more than you can afford in the first year in your business. Weigh your options carefully and focus on cost-effectiveness and productivity.
