Starting a business has become more difficult in recent years as a result of the global economic downturn. As a result, some companies are forced to take various approaches in order to reduce costs, including deciding to reduce the number of employees within the company and Swvl announced its intention to reduce staffing by 32%. Despite this, there are always many ways to reduce costs, but some are more effective than others. So what are some cost-saving tips for a newly established startup?
01. Reduce costs
Operating expenses represent the expenses that the company pays to conduct business on a daily basis such as rent, maintenance of equipment and facilities, monthly salaries and other expenses depending on the nature of the business of the company. Companies are forced to pay these wages regularly, forcing them to lay off some workers to reduce wages.
But in today’s digital world, it is possible to cut costs in various ways without leaving employees. One such method is to run the entire project, which saves the company money to set up its headquarters and the expenses that are paid regularly thereafter. Instead, the company is building a complete system for doing business remotely using the right technology to do business.
02. Outsourcing the main tasks
In every company, there are basic tasks that need to be done well, which is why they hire people to do these tasks. Alternatively, you can rely on external sources to perform these tasks, ensuring efficient execution and reducing costs, especially in non-recurring tasks.
03. Flexible work schedule
Some startups prefer to start working at their headquarters because it is not convenient for them to switch to remote work. In this case, the company can rely on flexible working methods, as one of the ideas to reduce initial costs and reduce head office costs.
Flexible work schedules make it easier for employees to balance their work and personal lives, and work hours that suit them. Companies benefit from this by using the principle of sharing equipment and devices between employees instead of buying equipment and creating a workplace for each person, enabling everyone to share space according to their available schedule.
04. Automation of work tasks
Automation is a great way to reduce costs and increase profits at the same time, thanks to automation it will be possible to transfer the presence of people to perform certain tasks, which helps reduce costs and hire people only for necessary tasks. In addition to the efficiency of automation that works efficiently helps in serving a large number of people, which increases the opportunities for growth and profit.
For example, instead of assigning an employee to manually communicate with people via email and send content to each new customer from time to time hindering the process of growth and expansion, marketing automation tools can send that content automatically, increasing the number of leads and increasing sales opportunities.
05. Rely on innovative marketing strategies at a low cost
There are many creative and inexpensive marketing strategies that can be used to promote your business. At the same time, it can provide you with the results you expect from marketing, helping you reduce costs and maintain your marketing performance.