Ask any small business owner about their most pressing challenges and they will definitely say ‘soaring costs’, ‘cash flow problems’ and ‘high overheads’. When spoken in the same breath as ‘low profits’, these challenges can seem very dire indeed.
Therefore it goes without saying that if you own an SME (Small or Medium Enterprise), saving money will be one of your primary concerns. A great way to do this is through software. Software is intended to make complicated things simple and bring the impossible into the realm of possibility. So why not use it to save some much-needed moolah?
Here are 5 ways that are efficient, practical and feasible!
- Track your revenues and expenses
When you track money, you save money. Moreover, a penny saved is a penny earned!
Use online accounting software to track your revenues and expenses, and to get accurate insights into your firm’s profit margins. An understanding of your current profitability will enable you to understand what your future profitability could be and take action to make that situation a reality. And naturally when your profits are higher, your costs will be lower vis-à-vis your revenues.
- Ditch expensive legacy systems
One of the biggest money-guzzling legacy systems still used in many firms is the good old landline telephone. Does your business need a landline? If not, why not try VoIP or virtual phone lines instead? More efficient, reliable and definitely cheaper!
- Embrace open-source or beta software
Are you buying unnecessary software licenses and paying upgrade fees to keep them current? You may be wasting money! Cut costs by only purchasing and installing the software that you really need. Even better, use open-source software! There are plenty of cheap (or free) alternatives to branded software that have great interfaces and most of the functionalities you need. Plus, they won’t burn a hole in your pocket! You can also explore the ‘beta’ route – but only if you have the appetite to tolerate ‘work in progress’ bugs.
- Use distributed technology/software
You can get a lot done from remote locations with messenger clients, video chats, project management software and cloud solutions. This can save you overhead costs and also give you more options to hire more workers (e.g. freelancers). Ultimately this can help you save on both human and capital expenses.
- Use software for payroll, HR management and asset management
Payroll or HRMS software like Spine HR Suite provide automation and ease of access while reducing admin costs, simplifying HR tasks, ensuring legal compliance and tax efficiency, and reducing the burden of hiring, on-boarding and managing staff. Asset Management System (AMS) like Spine Assets can help you manage your assets at low cost while getting the maximum possible returns out of them. Many of these solutions can be customized so you may be able to save even more by paying only for what you need. Great value for money!