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June 23, 2018

Boosting Bottom-line by Cutting Your Company Expenditure

Every business has been formed to earn a profit. Yet, it’s easy for finances to spiral out of control once a company starts to grow in popularity and size. It’s therefore essential to remain close to your company expenditure, so you can find ways to increase your business’s annual profit margin.
If you want to ensure your company doesn’t sink into the red, you must look for affordable ways to decrease your expenses without compromising on quality. Learn how to reduce your company’s expenditure.
Regularly Review Your Vendors
It is vital for your company finances to annually or semi-annually review your key vendors, so you can compare them against other similar providers to ensure you receive the best deal for your business and bank balance. You should also flag automatic contract renewals to make an informed decision before committing to another year.
Change Your Manufacturing Process
Domestic manufacturing can cost a pretty penny, depending on your location. It might, therefore, be wise to consider offshoring or outsourcing production in another country. For example, Mexico can provide low manufacturing costs and close proximity to the United States, so it can help businesses to invest in affordable manufacturing that does not impact quality. Find out more about offshoring vs outsourcing to make sure you make an informed decision. 
Reduce Your Marketing Expenses
While you do not need to eliminate all paid advertising campaigns, you should take advantage of free or affordable marketing tactics that could increase your company’s revenue. For example, you can reduce your use of traditional marketing and increase your company’s usage of social media. You could also build a customer email list to directly communicate with your subscribers, which can be an affordable way to increase your conversion rate.
Say Goodbye to Time-Wasting Employees
Employees who are not willing to work hard and help the company grow will be a waste of your time and money. While no employer wants to fire an employee, you owe it to your business and your other employees to say goodbye to an unhelpful member of staff. Doing so can speed up productivity and stop your company wasting money on an employee who brings next to no value to your annual turnover.
Narrow Your Focus 
Too many products and services can result in more manufacturing costs, a vast array of marketing campaigns, endless packaging, and multiple sales tactics, which can each destroy your profit margin. It could be financially beneficial to narrow your company’s focus, which can reduce your task list, production and packaging costs, and increase productivity. So, focus on quality instead of quantity, which will lead to greater customer satisfaction and increased revenue.
Utilize Virtual Technologies
Virtual technologies can help your business save a substantial amount of money throughout the years. For instance, video conference calls on Skype can prevent you from physically having to attend client meetings. As a result, you can reduce your travel expenses while boosting your productivity.
Cloud computing technologies are also ideal for businesses large and small, as they allow companies to centralize sensitive documents, which can prevent legal and financial ramifications following a data loss. The likes of Google Drive and Office 365 also allow staff to work on any device from anywhere in the world, as your employees can create, edit and collaborate on documents at any time. The technology could allow your team to work from home, which can help your business to save money on energy bills each day.
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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