Advice on running a lean business and how to cut costs to boost revenue

Advice on running a lean business and how to cut costs to boost revenue.jpeg

The business world can be faced with a lot of economic uncertainties. The slightest increase in revenue can go a long way to boosting small business cash flow. Therefore, reducing expenses can have a significant impact on a company's profitability.

Improving the financial status of a business does not necessarily require a large-scale overhaul. Simple steps implemented in the right way can help improve the financial condition of a firm. And there's no better time to step back and carefully evaluate your business practices than midyear. 

Read these few tips on how to cut business costs to improve the status of working capital:

1. Make use of modern marketing efforts

You cannot eliminate paid advertising that has a high conversion rate but it is worthwhile to consider cheaper alternatives. Increasing the use of social media to promote your business and implement search engine optimization best practices can see you put the money used for advertising to more productive use.

2. Using efficient time strategies

When productivity is optimized, the cost of doing business is lowered. Wasted time is equivalent to lost revenue. You can effectively minimize distractions in your business by limiting access to time wasters. For example, adopt the use of apps that help employees remain focused on their tasks. There is software available that can help you track employee time usage on projects and billable hours. You may also want to program a scheduled block of time for meetings.

3. Making the most out of your space

One factor that increases overall expenses is physical space. Overflowing storage, piles of paper files, too many supplies and inefficient furniture placement are relatively common space wasters in many companies. Centralizing the different departments of your business will go a long way in consolidating space and giving up what your business doesn't need.

4. Focusing on quality over quantity

Quality is what sells, whether it's products or services. When seeking business lending, let it add value to the products or services you give to your clients. Higher quality can command a solid reputation that allows you to charge a premium. Eventually, you will have higher revenues, a healthy cash flow, readily available working capital, and a more robust bottom line.

Cutting down on costs can be necessary for business growth. AT LVRG, we are all about solving small businesses' cash flow problems and helping them to make sound financial decisions. Talk to us today to learn more about how we can help grow your business.