While nobody has a crystal ball, a lot of signs are pointing toward an impending recession. Consumer spending is slowing. The employment market is volatile. Inflation, while ebbing, is still rearing its ugly head. But there is an important silver lining to remember regardless of whether a recession hits. Business owners are savvier and more agile than they were just a few short years ago, having undergone a master class on surviving and thriving during a very dramatic economic downturn. As a whole, we are a wiser bunch who are more willing and able to do things differently.
Whether you run a startup or an established business, this is a good time to consider belt-tightening measures that you can implement now or in any economy. Understanding your budget-conscious options empowers you to be a proactive rather than reactive business owner as you address your company’s journey through what could be a volatile economy.
Here are six smart money-saving tips you might think about implementing in your business:
1. Rethink Your Marketing & Advertising
The cost of marketing and advertising can be substantial, particularly for those businesses running pay-per-click campaigns or engaging large agencies. There are smart ways to generate contacts and customers that are both money conscious and effective.
Replace budget heavy ad campaigns with SEO enhancements on your website. Increase your organic social media marketing and focus on real conversations on those platforms.2. Hire for Smart
This is a hard one for many business owners, particularly those who personally take charge of employee acquisition. While hiring for experience has been the gold standard for years, seasoned professionals are often substantially more expensive than their less experienced counterparts. Many job seekers today are reinventing themselves and seeking work in fields that fall beyond the bullet points on their resumes.
It might be challenging to conduct a Boolean search for intelligence or adaptability, so when vetting for these qualities, lean heavily on referrals from those employees and other contacts whose opinons you value. Then implement low-cost employee development and mentorship opportunities throughout your business.3. Outsource Roles
Employees are a vital asset to your business. But with rising wages, insurance, and office space costs, your people are also one of your organization’s biggest expenses.
Not every task necessarily needs to be performed by someone on your payroll. Consider outsourcing some work to independent contractors or third-party service providers.
Click here to read “Social Media Marketing and Strategy: To Hire or Outsource?”
4. Negotiate with Suppliers
When an economy takes a dive, almost everyone feels the pain. That goes for your suppliers too. Their willingness to accommodate your evolving needs is important, as it shows their commitment to the success of your business in good times and bad. Try working with your vendors to obtain better pricing and more agreeable terms.
Also consider renegotiating the lease on your office space if you have one.
5. Eliminate Unnecessary Team Meetings
Team meetings can be a huge drain on the HR budget, particularly if the time is spent inefficiently. Consider eliminating at least some of your team meetings and open that time up instead for increased productivity or other revenue-generating activities.
6. Rethink Perks
We have all heard about some of those outrageous employee perks at big tech companies like Hot Yoga breakrooms, nap pods, and 24-hour all-you-can-eat sushi bars, but even those industry giants are starting to pull way back on those extravagancies.
While your business probably is not crazy-excessive in the extras you provide, there are still ways to trim down those expenses without negatively impacting your team. Replace costly perks with low-cost, high-satisfaction alternatives like “Bring Your Dog to Work Day” or performance-based extra time off. Consider offering work-from-home days where it makes sense.