Cutting costs does not mean sacrificing business growth, at least not anymore. By providing an array of effective cost-cutting options, technological advancements have made it easier for businesses of all kinds to reduce their costs. But while technology has impacted how we do business today, informed decision making remains vital to business growth. As such, the success of your business might be determined by the types of technology you decide to use and how you choose to implement them. To help improve your chances of success, here are five ways you can use technology to cut your business costs.
1. Embrace the cloud Entrepreneurs once had to store data on physical servers, a practice that requires a significant amount of money. This is because most businesses need to upgrade their physical servers every 3-5 months, which often means buying new computers and devices. But this is no longer the case.
For starters, cloud servers offer anywhere, anytime access, unlike physical computing servers. Secondly, entrepreneurs will not incur upgrading-related costs when using cloud servers. Thirdly, human errors and natural disasters do not affect the cloud, particularly since it’s an intangible digital platform.
Other than guaranteeing server and data security, you’ll find the services offered by third-party cloud storage vendors less costly than investing in physical servers. As such, cloud computing is one of the smartest, most effective options for cutting business costs.
Apart from helping you cut costs, moving your IT infrastructure to the cloud could free you up to focus on your core competencies and other important aspects.
2. Go green There are many reasons why modern-day entrepreneurs would want to invest in green technology. In a world adversely affected by global warming and pollution, going green is an important aspect of our lives including how we conduct business. It’s a proven fact that eco-friendly technologies can help businesses save millions of dollars annually.
Compared to traditional incandescent bulbs, for instance, CFL and LED lights have been shown to consume 75 percent less energy. Over its lifetime, a single LED light bulb can save you about $30-80 in electricity bills. So, although they might be more expensive upfront, investing in CFL or LED bulbs will be much cheaper in the long run.
Besides helping preserve the world’s diminishing forest cover, double-sided printing will help cut your costs as well. This is because you will be using about half the amount of paper required for single-sided printing. Using high energy star rated electronic devices is also another way to minimize your firm’s energy consumption.
3. Take advantage of free apps and tools Besides the savings offered by cloud computing, you can reduce your business costs further by shopping around for software, some of which can be expensive. Although purchasing, setting up and maintaining these systems could cost a considerable amount, software applications are a more affordable alternative to having a large workforce. If you look carefully, chances are you’ll find a free, equally effective alternative to almost every app and software used to fulfill your everyday business needs.
In fact, some free software applications can equal or even surpass their costly counterparts in performance. As long as the free Google Analytics is around, for instance, you don’t really have to subscribe to KlSSMetrics. So before you invest your hard-earned money on traditional platforms, give some of the free versions a try.
You can also use the internet to cut costs. Thanks to this technological advancement, it’s not only exceptionally easy but also much cheaper for businesses of all kinds to advertise. We all know that marketing is a primary contributor to businesses growth, which is why small and growing businesses should try to make the most out of their marketing campaigns.
4. Automate wherever possible A while back, the success of a business depended on the firm's workforce. Back then, companies used to rely solely on their employees and had to invest heavily in the recruitment and payment of said employees. Thanks to things like
marketing automation, this is no longer the case.
With an automated tool, one employee can now accomplish the same amount of workload as that previously handled by five workers. As such, automated processes can help reduce the amount of money spent on salaries. You can also invest in an automated e-payment system instead of relying on traditional payment techniques. Besides reducing the amount you’ll spend on billing expenses, these systems will help improve your cash flow. Just in case traditional paper receipts are deemed necessary, most e-payment systems allow users to print e-receipts. Apart from enhancing efficiency, precision, and security, automation is one of the best ways of cutting costs.
5. Outsource whenever possible You might not be able to deal with certain aspects of your business, especially if you don't have the technical know-how or specialized skills necessary. Also, some tasks will need the application of a specific technology. Thanks to technological advancements, businesses can easily outsource such jobs.
Outsourcing might be a more economical option than engaging a full-time team for such tasks. You should, however, take extra precaution since some tasks will require your attention while outsourcing others could cost you more.