Smart Decisions that Can Propel Your Company Forward

James Helliwell

April 24, 2017

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We are concluding the first quarter of 2017 and your business resolutions for the year may already be in full gear. But it’s not too late to add new money-saving practices to the list.

While many entrepreneurs are aware of the importance of cost-efficiency, few adopt sufficient strategies to make it happen. Reducing cost is well-known but how do you effect this in day-to-day operations?

Beware of focusing your activities merely on cost reduction. Sometimes, you need to acquire ‘expensive’ equipment to save money in the long run. The following could be the best decisions yet for your business in 2017.

1. Optimise your cash flow

Optimising your cashflow can help you determine specific business inefficiencies and techniques that could be used to avert them. Start with your vendors, do you really need some of them? Can you find less costly options elsewhere?

There are services that allow companies and vendors meet in an organised platform. They eliminate the need for indiscriminate expenses. You could itemise your business requirements and only pay as you use. This is effective in securing savings on overhead expenses.

2. Teach employees to see the business as their own

When people have a stake in something, they are more likely to be accountable. It is important for executives to instil ownership qualities in their staff. This can be achieved through various means:

Incentivising with stock options
Fostering a strong work culture
Organising team-building drives
Awarding performance benefits

Some gifts don’t have to be cash-based. They could be in the form of a weekend getaway for two or a special spa treatment. Even weekly trainings can build a feeling or belonging and ownership in your employees. When they take responsibility, your business can operate more efficiently.

3. Switch to Low voltage lighting

A lot of business establishments incur unnecessary costs on power consumption, when they could be using more-efficient appliances. For example, are your electrical bulbs still the incandescent type? You can cut down energy bill by almost 20% when you use LED. Such as LED High Masts in your warehouses and factories.

In addition to low voltage lighting, tankless water heaters are perfect for reducing heating costs. This appliance allows you heat only the quantity of water needed, instead of the whole tank. There are other smart appliances you can install around the office. They may cost a bit more, but their usefulness can be felt in the long run.

4. Partner with organisations for the long haul

Startups and medium-sized businesses can grow quickly when they find mutually beneficial partners. Creative collaboration has proven an effective way to sale without spending too much. Do a review of similar (or complementary) businesses in your niche. Are there services you can swap? Maybe you can provide IT services in exchange for marketing solution?

Service swap and other partnership activities reduce expenses incurred from outsourcing. It is important to first agree on a basis for partnership to avoid a feeling of disgruntlement by one party. Collaborations maybe temporary, for an event, or it could be for the long haul. From experience, long haul partnerships are more rewarding.

5. Use big data

This may come as a surprise addition, but analytical reports can help you make more informed decisions. If you have been relying on traditional means and instinct alone, you should consider employing empirical data techniques.

For example, data can inform you when it is best to focus on awareness campaigns instead of sales or promotional ones. You can save more money if you know why customers buy more on Friday evenings than Wednesday afternoons. The importance of big data cannot be emphasised enough. It is time to gain from its benefits.

What are your resolutions so far? If you have more ideas you want to add, please share in the comments below.