It is no longer news that 45% of businesses fail in the first five years. One of the top factors for this failure is finances. Funding is critical to the success of any business and any business found wanting in this area is on the verge of collapse.
Is your business on the verge of collapse? Are you struggling to keep afloat in the murky business finance waters? Don’t give up yet. Here, we discuss how technology helps you reduce business expenses and several technologies you can leverage. Using these inventions will enable your company to survive the stormy periods and thrive.
8 ways technologies help you cut business costs
If you’re interested in leveraging technology to reduce expenses, then you should be curious about the pros of introducing software into your company. Here are eight ways technological innovations help lower business costs.
They help you save time
The common saying that time is money comes to play here. Most technologies invented for businesses are aimed at helping you maximize your time. Manual processes take a lot of time and put a cap on how much money you can make within a specified period. With technologies that assist you in automating your processes, you’re able to increase your productivity many times over, saving manpower and money.
They increase your efficiency
With business technologies, you can do much more. Things that were thought to be impossible are now made possible through technology. Take remote work, for example. It is now easier and more acceptable due to technologies that facilitate smooth work from home. Already, 30% of employees work remotely for at least three days a week.
So many business processes are now automated, boosting efficiency in the workplace and the more efficiently you work, the more time and money you save. Turnaround times are now faster and deliverables are larger and more impressive. The more you’re able to satisfy your clients, the more profits you make. In other words, technology enables you to make more with less.
They help reduce material costs
Costs of materials are a major headache in business. While there are some materials you can’t avoid buying, especially if you’re into manufacturing, there are others you can do without. Adopting technologies in certain areas of your business can help you save costs.
Paper, for example, takes so much money as a result of printing. However, with digital documentation, you eliminate paper to the barest minimum. Other materials you get to cut with new technologies are printing materials, ink, paper, invoices, stamps, fuel and communication costs.
They improve your knowledge base
Internet technology makes business easier and helps you reduce expenses. Almost any information can be found on search engines. This is an incredible reservoir of knowledge you can bank on at any time. Many complex business issues have been solved by a couple of clicks. A task as simple as searching for how to cut business costs will give you innumerable solutions.
Other information you can get from the internet is information on business management, productivity, best business software and trends in your field, among others. Knowledge about these aspects of business can save you tons of money.
They reduce bureaucracy costs
Bureaucracy is one of the areas that gulp money in business. Administrative tasks like signing documents take so much time and resources. Sending paper documents for signing from company to company gulps funds. Digital signature or e-signature has solved this problem for businesses. Within seconds, documents have been signed and agreements reached, shaving off costs of courier and postage
They cut HR costs
Human resource management is vital to every company. However, without technology, it gulps lots of money. Let’s look at recruitment alone. The cost of advertising, screening, interviewing, and onboarding can be significantly reduced by using an all-in-one HR software, like GoCo. Other HR tasks that software can handle include the following:
- Training
- Benefits
- Payroll
- Attendance
- employee engagement
- Talent management
- Performance evaluation
They improve marketing and sales efforts
In the past, you had to physically go to clients to advertise to them or run ads in the traditional media. These marketing activities cost companies a lot of money. Today, we have technologies that save these costs. Since most people are online, it is easier and cheaper to meet them there.
Digital technologies not only let you market to your target audience, they also allow you to sell to them through eCommerce platforms. Without physically taking products to customers, you get to sell to them with a few clicks. The best part is that there is no limit to how much you can sell and you can sell many products simultaneously. In addition, the burden of delivering to customers is taken off your back by logistics technologies.
They boost client communication
Communicating with your customers costs both you and your customers a lot if you’re not using technology. You will be using traditional communication channels like telephones or postal services, which are very expensive. However, it is different with digital technology. A single customer relationship management (CRM) tool takes care of these activities and more.
This software lets you manage your relationship with your customer and monitor every stage of the buyer’s journey at a far cheaper cost than the traditional methods. The following are some benefits you get from using a CRM.
- Easy follow-up with potential clients
- Identification of up-selling opportunities
- Identification of cross-selling opportunities
- Staying in touch with customers
- Getting feedback
- Initiation and sustenance of customer retention programs
4 ways you can leverage technology to reduce business expenses
Every day, new technologies emerge for businesses, and they have two missions – to make business operations smoother and less expensive. The easier it is to run your business, the more money you make and save. Read on to learn how to use these technologies to reduce business expenses.
Take advantage of fleet preventive maintenance software
If your business involves the use of vehicles, then you must invest in preventive maintenance software and be familiar with the best practices for implementing fleet preventive maintenance. With a fleet preventive maintenance software, you can efficiently maintain your fleet. It assists you in prolonging your vehicles’ lifespan, optimizing uptime and guaranteeing the safety of your fleet on roads.
Invest in mobile app development
With lots more people owning mobile phones, it makes business sense to jump on the technology and invest in mobile app development. This technology is a surefire way to save and make money. A mobile app helps you reduce business expenses in the following ways:
- It increases employee efficiency
- It reduces marketing campaign costs
- It strengthens customer relationships
- It makes getting feedback easy
- It gives great customer insights
- It builds your brand
Adopt cybersecurity technology
Cyber attacks are everywhere on the internet; if they are not well-managed, they can cause you an arm and a leg. Companies suffer a lot of financial loss due to data breaches and other forms of cyber attacks. To save unnecessary costs in your business, have a strong cybersecurity software and follow the best practices. Elements of cybersecurity are as follows:
- Mobile security
- Application security
- Data security
- Operational security
- Identity management
- Cloud security
When you have a solid cybersecurity software in place, you enjoy the following benefits:
- Protection against data breaches
- Protection for your end-users
- Protection for end-use devices
- Prevention of unapproved users
- Regulatory compliance
- Protection of brand reputation
Use a project management software
Project management software is one of the best business management software tools that can help you save money. A project management software can be used to plan your project, schedule and track it, as well as allocate resources more appropriately. It enables you to maximize your resources to save costs and make more profits. Here are the advantages you get from using a project management software in your organization.
- Seamless project planning
- Optimization of resources
- Improved collaboration and communication
- Budget management
- Effective documentation
- Reporting and forecasting
Embrace technological renovations to save costs and grow your business
A lot of expenses go into running a business, and if all hands are not on deck, you could be going out of business instead of running one. Thankfully, technologies are now available to help you save and manage costs in your company. These innovations help you save money by saving time, reducing material costs, increasing your knowledge base, cutting off bureaucracy costs, improving marketing and sales campaigns and boosting customer communication.
Developing mobile apps, using a fleet preventive maintenance software, leveraging cybersecurity software and taking advantage of project management apps are some ways you can put technology to work in your business. Be sure to read reviews and do further research before choosing solutions for your business. Remember, the aim is to save costs, make money and grow your business.
Moyofade Ipadeola is a Content Strategist, UX Writer and Editor. Witty, she loves personal development and helping people grow. Mo, as she’s fondly called, is fascinated by all things tech.
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