Nowadays, one of the biggest concerns in the daily struggle to keep a business running is how to reduce costs to maintain constant cash flow. Taking care of this flow is especially relevant because liquidity helps to invest and to reactivate the operations of a Business as quickly as possible.
In this article, we will give you some tips and ideas to save money and help you achieve the success of your SME during the economic recovery.
1. Use public relations as advertising
An alternative to advertise effectively and reduce costs is the inclusion of public relations in the marketing strategy of an SME. Use your experience and knowledge to appear in publications and the media as a reliable reference in your business sector.
2. Make interchanges with other Businesses
The reduction in cash flow often slows down the acquisition of supplies for the operation of small businesses. However, through exchanges you can meet some needs without having cash. For example, if your SME offers consulting services in human resources and you do not have an advertising budget, you can carry out an exchange with a marketing agency to help you program and optimize your ads on social networks in exchange for training on time management for your employees.
3. Move your digital operations to the cloud
To save and have remote access to all your information from any place and device, cloud-based operating programs, for example, CRMs or programs that help and facilitate task management and accounting are usually a cost-effective alternative to replace internal software.
4. Keep remote work
During the 2020 health crisis, the use of technology had to be implemented to keep Businesses running remotely. Now, in the process of economic reactivation, evaluate if this measure continues to work for your SME, since it can represent a significant cost reduction in office space, payment of services, etc.
5. Invest in environmental care
Adopting ecological measures in your SME is not only a responsible strategy, it is also a smart financial move. For example, you can save light if you disconnect the computer from the power at lunchtime or when you are doing other activities. Reducing energy consumption is a respectful measure for the environment and a way to reduce the electricity bill in your business.
6. Hire inexperienced trained staff
Experience is not everything. Try to hire fresh graduates with fresh ideas. In addition to the fact that they can provide the impetus to continue learning and improve operations in your business, they also represent a monetary advantage because they will have a base salary that will increase as they develop in their work.
7. Practice guerilla marketing
Guerrilla marketing is a strategy to promote products or services in a creative, ingenious and unconventional way to generate maximum impact with few resources. Advertising on crosswalks, at bus stops or on trucks can make your business stand out and can also save you money. If you only invest in an eye-catching advertising image, your customer will naturally be drawn to it.
8. Keep track of all your expenses
Documenting all your business expenses is a smart practice that is often overlooked, but at this stage of economic recovery it is essential to reduce unnecessary investments. Small cuts in regular expenses can translate into big savings in the long run. Make a list of what is not generating return on investment to identify what can be reduced or what should be eliminated.
9. Make your usual purchases wholesale
Analyze your expenses and identify the things that you buy without keeping a cost control or without choosing the cheapest option. Products commonly used in your Business may be purchased less frequently if purchased in bulk. This measure, in addition to being a practical tool to save time, will also allow you to save money.
10. Do traditional personalized marketing
A simple and effective practice to keep your customers' attention without investing directly in advertising is personalized marketing. For example, when you ship a package with your products, take five minutes to handwrite a thank you note. A small message in which you thank the purchase and wish your customers a good day can make the difference so that they buy from you again.
11. Partner with other brands to create advertising
To reduce costs and increase the reach of your Business, create organic alliances with other related brands. For example, tour sales businesses can be promoted in conjunction with local restaurants to offer comprehensive experiences: a visit to a tourist attraction can be complemented with a typical meal from the region. Teamwork is an honest and effective tool to generate interest and reach more potential clients.
12. Understand your target audience
If you know your potential customer well enough, you will know what their buying habits are like in the economic recovery. For example, if they use social networks more, you will be able to concentrate your digital marketing efforts on those platforms instead of distributing your resources in the other online advertising spectra. If you know what they like, how they want to get it and how much they would be willing to pay, it will be easier to focus your investment on what you know will have a better response, so you will not only save money, but also generate more profits.
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