Posted At: Jan 02, 2023 - 31 Views

By Ashley Kinsey2023-01-23

Following the start of the economic downturn in 2022, cost savings are a dominant focus this year for businesses of all kinds. Though, there is lots to be considered due to the many knock-on effects, including reduced quality or difficulty managing demand. Therefore your actions should be carefully considered and best-suited to your particular business. Here, we’re going through some of the most beneficial ways of minimising costs.

Managing budgets more closely

Losing track of your spending can result in significant cost rises when we look at an entire year of small mistakes, meaning it’s easy to dismiss day-to-day if it’s not frequently reviewed. Budgets are there to ensure the best possible return is achieved when spending a business’s capital, so it’s important they are adhered to as closely as possible if overspending is not going to greatly impact the return. Staying on top of budgets can be made easier with the correct software, whether you prefer to see figures in an Excel spreadsheet or in a dedicated system.

Increase efficiency

A lack of productivity can be a massive drain on costs and is often less apparent than other issues as the spending is less direct. This can very much come down to the quality of your team and finding the best way for them to gel. Having talented individuals is one thing, but having them work together as a team effectively is what makes a difference. Ways to improve this side of your business include, team-building activities and digital collaboration tools such as Slack or Trello.

Overseas labour 

In recent years, we have seen extreme increases in UK salaries, resulting in extra stress being put on your bottom line. At DeskFrnd, we offer global co-employment solutions to offer you the best overseas talent without the worries of administration and implementation. These individuals live and breathe everything you do, either as an extension of your workforce or as your entire team. Your team is located in our super hubs, giving you complete accountability and control when managing their daily operations. Best of all, we offer up to a 60% cost saving over UK salaries, meaning you can invest your money elsewhere.

Downsizing with remote workers

Going hand in hand with the above point, reducing the size of your headquarters can be a huge cost saver. If more of your workforce is remote, you require less space and can reduce your monthly rent. In today’s environment, it’s not uncommon for businesses to remove their physical headquarters altogether, improving their profit margin massively. This may sound simple, but without a co-employment organisation housing your workers, you could lose control due to workers being at home.

Utilising technology

As a business, we are huge on collaboration throughout teams, but we also understand it doesn’t always need to be in person. With so many applications available to us, we can be in another contacts office with the click of a button. This can save you costs on travel expenses and reduce your time on the road, also making you more efficient. Aside from your typical interactive platforms, you can also reduce costs through efficiency using time-tracking apps, such as Toggle Track or HourStack.

If you found this useful, you may also enjoy reading about How a PEO can change the future of your business.