Genome Blog / articles / 5 tips for saving money in business
Mar. 16, 2023
Multiple companies around the world give 110% of their hard work, passion, and dedication for their business to succeed. But sometimes, saving money for businesses means you need to work smart, not hard. And Genome has some tips on how to do so.
In this article, we will share some ways companies can save money by different means. So, if you need money-saving ideas for companies, this blog is for you!
5 business cost-saving ideas
Start from within – optimize all about your company
One of the best cost-cutting ideas is actually a simple one: analyze all parts of your business. What do we mean by that? Well, there are a couple of components to this task:
- Check all the in-use services to ensure their business necessity. If in doubt, rethink using some of the services or check the cheaper or more beneficial alternatives. Consider renting some equipment, as it will be more cost-effective than buying expensive appliances that can harm your budget. It especially goes for startups. For instance, you don’t need a massive hardware server, just buy a cloud one, and it will work wonders. Do not refuse any low-price and cost-free options – you wouldn’t believe how handy they may be. Google Sheets is as good as any other paid service, for example.
- Here’s another company’s cost-saving idea. Some prominent companies started in the garage – literally. Of course, such an option doesn’t work for everyone, but it provides great insight – you don’t have to have a perfect starting point in terms of office space to become successful. It is a good deal to save your money on an office or workspace at the beginning your way. Your potential employees would be even happy to work from home. According to the survey by Cisco of 28,000 full-time employees around the globe. 78% of respondents believed remote and hybrid work improved their overall well-being. And 79% of respondents felt that working remotely improved their work-life balance. 82% said the ability to work from anywhere has made them happier.
- Last but not least, a well-thought-out financial plan is the cornerstone of your success and corporate cost saving. In general, many experts advise considering both positive and negative scenarios for saving money for a business. But we highly recommend building your strategy around the worst-case scenario to prevent unexpected results.
Negotiate better conditions for your company
It is also one of the ways a company can save money. If you have been working with suppliers, vendors, and delivery businesses for a substantial period of time, you need to try and negotiate better prices for your business.
But what if you are a startup or a small business? You need to carefully research the best suppliers and partners for your company. Vendors from the first page on Google are definitely not the best, affordable option, so give a chance to price research. We know sometimes it seems nearly impossible because companies often hide their prices. But you need to find the best deal for you.
You may also save money on software. Free apps have the potential to become your best friend. Moreover, you don’t have to provide your whole team with paid apps, especially if you are in remote working mode.
Improve your services, so clients don’t leave
It is a bit tricky business cost-saving idea, but let’s try it step by step. If you do business or sell your products online, you must have a user-friendly website and know your audience. This is one of the best ways to invest in the longevity of your company.
Explore the cart abandonment statistics. It may help you understand why only 1 of 5 potential clients will complete the order. There will always be a significant number of “just looking” visitors – your job is not to lose your “ready to buy” customers.
If we dig into statistics on why shoppers abandon carts, 23% complained about shipping, 6% had an issue with payment options, and 4% experienced a technical problem. The conclusion is simple – usability, variability of shipping, and payment options are the way to go.
In the case of offline sales, we have something to say as well, you would be surprised, but according to statistics, 15% of customers in 2022 used the websites just to look at products but firmly decided to buy in-store instead. Don’t count on the power of the internet as the only option to sell goods.
This option is a great way to help your business as it progresses through its various growth stages. Outsourcing often saves funds. Some even consider it the best cost-cutting idea.
For instance, the statistics show that 66% of businesses in the United States outsource at least one department. Even small businesses (nearly a quarter) outsource to increase their efficiency. Still, we highly advise you don’t overdo it.
Outsourcing is suitable as a tool to make your work simpler, saving money on minor staff members while you can focus on your primary products and tasks after. All in all, it allows saving money for small businesses particularly.
Nevertheless, your product remains yours only if the core team cares about it, so contractors can never easily replace the essential employees.
Get a reliable bank
Last but not least, make sure to find a trustworthy and secure financial institution for all your banking operations. And, if you need both business and merchant accounts, one of the ways companies can save money is to start them within one institution. With Genome – you can!
We are an Electronic Money Institution that offers personal, business, and merchant accounts within one platform! Security is everything to us – Genome is licensed and supervised by the Bank of Lithuania, we are PCI DSS, PSD2, and GDPR compliant. Prices for all our services are transparent, and you can find them here.
Inside your business wallet, you can have multiple accounts in different currencies: euros, British pounds, and US dollars. This will allow saving costs in business when you need to make transfers in different currencies.
Speaking of, Genome provides SEPA, SWIFT, and Faster Payments, meaning you can choose the most beneficial option for you. And our instant internal transfers between Genome users are free!
You can also order as many virtual and physical Visa cards for your business as you need!
Last but not least, we have a shared account feature, meaning that you can allow your employees to access your business wallet and share the workload. No worries, you can closely monitor and authorize their actions at all times!
What is the most profitable way to save money?
Saving money is not usually a profitable venture. On the contrary, you need to cut some expenses and review how you spend the corporate funds.
How can I save money in my small business?
Check some of the best cost-cutting ideas we provided in the article. For instance, you can outsource some work and rent equipment to save funds. Also, consider remote work for some of the staff members.