The pandemic crisis has been a wake-up call for countless businesses around the world. With the pressure to survive through the crisis, businesses have developed smart strategies to cut down costs. As a result, many entrepreneurs have realized they could significantly reduce their business expenses, even now that the situation is going back to normal.
The health emergency has taught entrepreneurs a lesson in smart business management. Therefore, more and more are reaching out to suppliers and providers to negotiate new deals that will be profitable for both parties. From extending business leases to joining an advocate program, negotiations can save you coins. Smart purchases, such as preferring used equipment rather than brand new when it makes no difference to your business process, can be a game-changer. Finally, investing in your employees and the environment can save costs in the long term and present additional benefits.
Are you looking for more tips to save your company money? This article is for you!
Reduce internal fulfillment
Third-party logistics projects, aka 3pl services, can remove a lot of hassle for companies. Contrary to common belief, fulfillment services do not focus only on shipping and deliveries. Indeed, the majority of companies using third-party fulfillment need consulting for internal fulfillment processes, such as EDI integrations. The good news is that 3PL can be a significantly profitable approach for businesses of all sizes. Working with a #PL partner means you can start with low capital investment, as you essentially rely on your partner to process and manage all orders. You can save costs in terms of workforce, warehousing management system, sortation, handling, etc. Additionally, administrative tasks that can be time-demanding, such as organizing international shipping and managing returns, are the responsibility of your logistics provider, so you can focus on the rest.
Prefer scalable solutions
There is no such thing as one size fits all. Business owners understand the importance of tailoring the services they receive to meet their exact needs. Unfortunately, more often than not, service providers’ packages force you to compromise. Pay more to have the feature you need, including many you do not need, or pay less and miss out. That’s precisely why it;’s a good idea to look for scalable solutions that seamlessly adjust to your situation. A small company could ditch their business lease for a co-working space, for example. Co-working areas tend to be more affordable than offices. They also come fully furnished and equipped, meaning you don’t have to pay for office design. Besides, you only need to hire more desks when your team grows rather than changing offices!
Hire a remote team
Is working remotely cheaper? For a lot of companies, remote working was the only option during the pandemic. However, entrepreneurs on LinkedIn are arguing for bringing their teams back into the office. Yet, working remotely can save the business $16,400 per year per team member. This isn’t negligible. Remote workers also tend to be more productive as they are in charge of their time.
Getting more out of your business without paying more? This sounds like a dream, but it a sustainable option for entrepreneurs who are willing to think outside the box.