Cash flow problems are the biggest killer of new businesses and they usually arise because the overheads are too high. If you’re spending loads of money before you’ve found enough customers to bring in a good amount of revenue, you’ll burn through all of your cash in no time at all and soon find yourself in serious trouble. That’s why keeping those overheads as low as possible is vital for any business, even well-established ones. There are all sorts of ways to do it, but technology offers some great cost cutting opportunities that you should be taking advantage. These are just some of the ways that you can use technology to reduce your business costs.
A flashy office space is one of the largest costs for most businesses so if you can avoid that, you’ll be well on the way to making your spending more sustainable. You could always run your business from home to keep things cheap but the only problem is that it makes you look amateur. If you’re dealing with clients and your business address is a residential property, they might not have much faith in you. You can get the best of both worlds by using a virtual office. There are so many great benefits of a virtual office it’s a wonder that everybody isn’t using them already. You’ll still have a professional business address for clients to send correspondence to and your carbon footprint is reduced because there’s no physical building to run and nobody is driving. You also have far more choice when it comes to hiring employees because you aren’t limited by geography; they’ll be working remotely from home so you can hire the best people from around the world.
Computer software is another big expense for companies. Every company relies on it heavily so they often think that it’s a cost that they can’t avoid, but that isn’t true. There are so many expensive pieces of software out there that have a free counterpart. The free software doesn’t usually have all of the same features but in most cases, it’s good enough to do everything you need it to. If you’re paying for a website analytics tool, Google’s free version is just as good. There is loads of free accounting software out there as well that are just as good as the programs you’re spending money on. Take a little time to look at what software you’re paying for and see whether there are any free alternatives. However, it’s important to remember that when it comes to things like cyber-security, you need the best software possible and the free ones just won’t cut it.
Speaking of software, there’s a lot out there that can automate tasks that were previously done by staff members. Even if it’s software that you can’t get for free, the yearly subscription is usually going to be a lot less than the cost of paying somebody’s salary for a year. Before you hire any staff members, ask yourself whether you really need a person to do it or whether you could use automation software instead.
These 3 pieces of technology can massively cut your overheads and increase your profits in a big way.