“There are many advantages and disadvantages to running a business. One of the disadvantages is the cost of daily operations.”
Does your business bleed profits?
There are many advantages and disadvantages to running a business. One of the disadvantages is the cost of daily operations.
If you spend your income, you dig yourself a deep hole.
Did your company take a financial hit during the 2020 lockdown like so many others?
According to Statista, “During an October 2021 survey, 22.9 percent of surveyed small businesses in the United States claimed that the COVID-19 pandemic had a large negative effect on business. In comparison, only 1.8 percent of respondents said that the pandemic had a large positive effect on their business.”
If your business is losing money, you might continue to experience losses as you head into the holiday season.
Consumers spend money during the holidays on gifts. Unless you market a gift that’s trendy during the 2021 holiday season, you might find your finances grow bleaker as you head into 2022.
However, the new year is right around the corner.
By the time you are done reading this guide, you will discover how to prevent your business from losing money in 2022.
Are you ready to discover how to reduce costs?
Have you heard social media’s organic reach is down?
One of the disadvantages of Instagram’s business account is that if you don’t pay to boost visibility, the insights that come with the account don’t help you.
Are you paying for Facebook ads? The same situation applies to Facebook.
Today, social media sites want you to “pay to play” and they reward you with visibility. Businesses exist to make money, after all.
However, only about 50% of brands are paying to boost visibility on social media sites which is good news for you.
If only half are paying, that means the other half of businesses are using free strategies.
For instance, you can use the AIDA marketing funnel. AIDA stands for Attention, Interest, Desire, and Action.
Generate attention, boost interest and desire, and consumers will take action and make a purchase.
Here is how I use the AIDA model in my business:
On Instagram, I use the countdown sticker to announce a new course launch for my Mostly Blogging Marketing Academy.
When people turn on the notification, they show interest. I boost their interest by introducing myself in their Direct Message box and offering to answer any questions they may have.
This increases their desire which leads them toward action.
One important note, though…
Research shows consumers have to see your brand seven times before making a purchase.
When the consumer and I interact in the DM, Instagram is alerted that we like each other’s content. Instagram then pushes my content to the consumer without me paying to boost my visibility.
The AIDA model works. Try these free strategies before paying for social media ads.
When you automate, you use machines to perform tasks. This means you hire fewer employees. Although you need to pay for the automation, you reduce costs.
For instance, automation doesn’t require you to pay for benefits like people do.
Also, you don’t need to keep as many employees on your staff if automation technology can do the work of humans.
Here are examples of areas in your business where you can reduce the size of your staff:
Many companies hire payroll clerks. According to Salary.com, payroll clerks make $48,268.
Today, businesses use cloud-based payroll software.
Accountants bill by the hour. Even if you still need to pay an accountant, the hours he bills you will be reduced when you integrate the software into your business. This is a huge yearly savings.
Does your company use a business editor?
According to Zipia.com, business editors make a yearly salary of $66,168.
You are a professional. You naturally want your business’s written material to be error-free.
However, you need to at least try the free grammar editor, Grammarly, before hiring a paid editor. Even if you use Grammarly’s premium version, you can save on tools by using discounts.
Grammarly’s premium tool costs $37.50 per month for three employees. This cost is certainly more affordable than an editor.
As a result of hiring fewer employees and letting go of employees you find you no longer need, automation results in your business saving money.
If you are just starting your business, investing in solar panels may be a cost-effective strategy.
When you put a solar panel on the roof of your building, you save money on your electricity bill.
If you are still running your company when the panel is paid off, you save money since you will eliminate your electricity bills.
Although many of these strategies have you reducing the number of humans on your payroll and replacing people with automation, you should definitely hire a freelance accountant to look over your books. The accountant will make sure you are not overspending. The accountant will find ways for you to cut corners.
Before resorting to what might be a needless accountant expense, try using Quicken software.
Quicken tells you where your income goes so you can see your biggest area of overhead and try to reduce it.
At $35.99 per year, using Quicken is more cost-effective than hiring an accountant.
Even though the last two years saw businesses hit hard financially due to the COVID virus, 2022 doesn’t have to be so dismal.
Follow these four strategies, and you’ll experience a more lucrative 2022.