Due to the COVID-19 outbreak, the majority of businesses have had to alter the way they operate and cut costs wherever they can. Navigating a business through the current environment can be daunting, especially for businesses that are new to a particular industry. As the crisis continues to disrupt business as usual, companies are struggling to determine its full impact on their businesses and how to best respond.
We have put together some helpful tips to guide you these trying times and to help your business save money. These money-saving tips include:
Equipment leasing helps you avoid the high upfront costs that come with purchasing equipment. Instead, you will be paying a low monthly cost for the equipment that you need. Equipment leasing is a good solution if you have a limited budget as the payments are low and fixed each month. The cost of equipment leasing itself is spread over the entire term of the lease, allowing you to use the capital you would have spent on purchasing equipment in other areas of the business, such as sales and marketing. Partnering with an experienced equipment leasing company is one of the most fiscally responsible ways to gain access to equipment while cutting up-front costs.
Choose Used Equipment Over Brand New Models
Another way to save money is to buy or lease equipment used instead of new. While new equipment may look shinier, it can cost significantly more than used. Whether you need heavy-duty construction equipment or forklifts for a warehouse, buying or leasing used equipment can save you an enormous amount of money. The decision to select new versus used depends on the type of equipment and how it will be used, so it is best to consult an equipment expert to make sure you fully understand the costs and benefits.
Check with Multiple Suppliers
As equipment is critical to the success of your business, you must find an experienced equipment leasing company to work with. Make sure that you compare multiple options to find the company that best meets your needs. Some companies may be more familiar with a particular industry while others will provide you with access to a wider range of models or products. While most prices will be competitive, some providers might offer loyalty incentives or provide better customer service.
Once you have saved money with equipment leasing or equipment financing, it is time to save money on your workforce. Employees are essential to your business, but employee costs including salaries, office space, and insurance can make up a large proportion of your overall budget. To save money, consider what work can be completed by contractors or consultants instead of full-time salaried employees. Managing your costs well will ensure that you are able to maintain profits and compensate your employees fairly.
Embrace the Cloud
Whether your business is large or small, embracing and focusing on cloud-based software systems is a great way to save money. It avoids the cost of expensive hardware and cloud-based services can host data more efficiently. With cloud-based software, paying for usage on an annual basis is far more cost-effective than purchasing and maintaining expensive software in-house, as well as needing the relevant staff to run and manage it.
Know Your Customers
Spend more time learning more about your customers and you will be able to save money. By knowing what type of search terms they use, what platforms they utilize, and their online purchasing habits, you can focus your online marketing efforts more effectively. Your marketing budget will be more focused, efficient, and ultimately more effective as a result. You may also identify new ways to solve your customers problems that can lead to additional revenue.
With the current Coronavirus outbreak forcing many people to work from home, consider transitioning to this model long-term. Not all jobs can be completed remotely, but where possible reduce your company’s physical footprint to save on office expenses. Technology has enabled remote work to be completed effectively, so now is a time to consider this cost-saving measure.
While, equipment leasing and going virtual are good places to start, consider all of the tips in this article to maximize your company’s savings. The key tips to follow are:
- Equipment leasing
- Choosing used equipment over new
- Finding an experienced supplier or equipment leasing company
- Outsource where possible
- Embrace the cloud
- Know your customers
- Go virtual
By taking these steps you will be save money and revenue, not just for now but for the long term.