Save Cost - Top tips for SMEs

When starting or growing a business it is very easy to get carried away and start spending large sums on items that you may not need or overspend on things that you do. There are some key areas that you can focus on which can make all the difference between making a profit or a loss.

We’ve all got our eye on the bottom line but are there ways you could be cutting costs while also improving business efficiency? Also, what is the need to save cost for the SMEs? and effective ways to reduce business cost.

Why do SMEs need to save cost?

Small businesses reap big benefits by reducing or saving costs. It is one of the many ways to improve how effectively a small business operates. It’s important to take the time to step back and look at where you can make savings. By changing old techniques and implementing new strategies, you will not only see savings in the short-term, but progressive long-term profits. Doing your research and analysing where you can make changes is the first step. The small businesses need to start ticking the small tickets items and then look at the bigger ones.

Most companies focus on bigger costs and try to cut these. But there are times when cost reduction for smaller things can make a big difference and lead higher savings. We have listed a few ways of saving costs for small businesses.

1.  Get Rid of the Paper
2.  Embrace Streamlined Software
3.  Decrease Travel Expenses
4.  Engage in Social Media for Advertising
   

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5 things SMEs are doing wrong in saving costs?

The biggest hurdle in making a company from an eager start-up to a rocksteady brand is Savings. We have listed 5 things that SMEs are wasting their money on — and what they can do to change that.

1. Buying office space before it’s needed: Ambition is great for any business. Having a clear vision of where you want to move to and how you want to grow often gives you the resolve to push through the trials and achieve that aim. Too much ambition, though, can become a problem. For SMEs, that comes in the form of premature scaling: buying space in anticipation of growth that isn’t guaranteed.
2. Making wrong hires: A wrong hire is one of the costliest mistakes you can make, especially in the early days of your business. Rushing to recruit the wrong person might mean they take longer to come up to speed or they leave quite quickly, so you have to start the whole process again.
3. Branding: Advertising and branding agencies often try to sell you a dream, especially if you’re new to running a company. Do not try to focus on branding and advertising too early. It will only mean a waste of vital resources.
4. Wrong advertising: Advertising and digital marketing are both very critical if you want to create a brand that people flock to, but it can be a mistake for businesses to jump in too early. Not only can advertising be really expensive, but it’s also unlikely to drive concrete returns if you do it wrong.
5. Paying more for Mobile and Landline individually: It can be far more cost efficient to keep your broadband, mobile and telecom billing together. In choosing a company with a wide product portfolio and ability to offer integrated solutions, small business can benefit from multiple discounts in one place, including cost savings on mobile, broadband and calling charges. 

What does every manager should know to cut down business costs?

Administrative cost-reduction opportunities follow similar patterns virtually everywhere. As you begin your pursuit for administrative cost savings, keep two key points in mind:For a while now, you have managed a large department as a good manager. You have also cut costs, whenever possible. But now the management wants you to cut down on administrative costs by up to 20 %. Are you clueless about how it can be done? Read on.

First, forget about finding a single idea that would radically change the cost structure of your organization or department, thereby solving your problem in one go. You need to structure different solutions for different problems.

Second, you should tailor the reductions you pursue to your savings goal. Incremental ideas with minimal impact on other departments can allow you to trim up to 10% of costs.

5 Ways to effectively reduce business costs

Is reducing cost for your Business Mobile a challenge for you? Effective management of Business mobile costs is always a challenging task for small and medium enterprises! Mobile costs are highly sensitive to business user behaviour, and controlling that behaviour is complex and resource intensive.

With the recent arrival of 5G this year, there is an advent of high-speed data. This will eventually result in higher data usage. Therefore, leading to higher mobile cost for SMEs. It is now time for SMEs to strike a balance between user productivity and usage controls.

Savincom has shaped a range of best practice guides for SMEs that offer detailed look at the causes and impact of these converging challenges on mobile IT administration and budgets; also proving clear insights and best practice approaches we can help your business with. 

These are the 5 ways Small and Medium enterprises can effectively bring down cost for Business Mobile:

1. Find the mobile plans best suited to your business budget
2. Take advantage of shared plans
3. Clean up your inventory & remove inactive services through Mobile Device Management
4. Cut international roaming tariffs
5. Trust the numbers

5 ways VoIP is reducing business cost

The average savings businesses see after switching to a VoIP system range anywhere from 30% to 50%. While the amount of savings can vary from case to case, almost all companies see a meaningful reduction in their telecommunication expenses. The most significant cost savings are realised by companies switching from an on-premise phone system, to a cloud-based phone system.

We have listed 5 ways in which VoIP helps small businesses to save cost:

1. Reduce hardware cost
2. Low cost phone calls
3. Cost effective expansion
4. Software upgrades
5. Increased productivity

Finally, reducing costs should be made top of the agenda for owner-managers of small and medium sized companies. Whether your goal is to boost profits, or simply to survive in a turbulent market place – getting to grips with your costs can often be a more effective strategy than increasing revenue. We understand that cutting costs isn’t always easy and know that spending strategies need to be balanced if they are to work. Savincom has helped hundreds of Small and Medium sizes companies reduce costs by up to 35%. Small changes have led big savings and higher revenue for the companies save more than 35%. Small changes have led big savings and higher revenue for the companies.