Entrepreneurs who anticipate quick startup, growth, and success when undertaking a business venture forget that the accomplishment of such goals requires proper utilization of the right entrepreneurial strategies. A worthy business venture demands that the business leaders and managers should work out a means to cut down operational costs, ensure that the business runs effectively and efficiently, and increase profit margin with ease. This goes along with adequate training, research and preparation, monitoring of successful related businesses, and competitors and avoiding the business damaging methods.
Related: 5 Tips For Starting A New Business On A Shoestring Budget
Understanding the value of reducing fixed and variable overhead costs is a good way to start a successful business. With cost reduction, it is possible to gain higher profits and development of a substantial business enterprise within a short time-span. In that regard, here are helpful approaches for how to reduce costs when starting a business.
Make use of the latest technology
There are technological advances that have been made in the recent years that, if properly exploited by entrepreneurs, can help greatly in cost reduction.These include:
Creating a business website for the target group to view
Consulting and even buying products online
Using cell phones as opposed to telephone lines
Transitioning to digital invoice and bill payment system, and an electronic filing system
Using the cheap and fast online marketing (especially a business blog and advertising on social media platforms such as Google+, Pinterest, Facebook, and Twitter)
All these will cut costs in the sense that there will be little to be incurred in buying expensive equipment and most of the equipment bought is durable and efficient.
Coming up with a budget and sticking to it
Budgeting is a powerful tool that allows entrepreneurs to make informed financial choices, having a clear mind on the expected costs to be incurred and possible outcome of spending. As time goes on, it is essential to compare the actual costs of supplies with what is actually spent using a spreadsheet. If the actual cost is higher than the planned amount, then there is the need to reduce the costs. Strategies for this include going inexpensive, but not cheap, bargaining, and even buying supplies in volumes to earn rebates. Therefore, cost-saving solutions should be utilized and proper goals set and strictly adhered to.
Hire flexible workers with multiple skills
It is also important to conduct the proper recruitment of staff and hire individuals that have a vast knowledge in the field and have acquired enough experience by holding various responsibilities in related enterprises. Employees should also be capable of taking on more than one role since this can reduce the cost incurred in salary payment. This can also reduce work overload and cost of outsourcing individuals to undertake specific tasks. There should be an attempt to hire employees in shifts to increase work efficiency and accountability.
Reducing the cost of utility bills
With the current increase in prices of electricity, gas, water, and other energy resources, employing strategies that can help reduce energy consumption can mean a significant reduction in overhead costs. The strategies employed should be simple and inexpensive to implement and they include going green to save energy. The business should consider buying light emitting diodes (LEDS) in lieu of incandescent and fluorescent bulbs, installing occupancy sensors to control lighting in the premises, installing low flow faucets, toilets, and high-efficiency urinals, upgrading computers, and combining trips to save on vehicle gas consumption.
Business insurance cover and provider
The value of an insurance cover should be underscored in undertaking any business venture, but it doesn’t mean that the business should pay high monthly premiums. The business managers should shop around for a perfect company that offers an insurance cover with sufficient details and terms, as well as cheap premiums. Also, there is the option of the company paying all the premiums at once, which usually comes with discounts that can help the business save some amount of money.
Buy refurbished equipment and used cars
The business can also maximize the benefits of refurbished equipment from a manufacturer, which is usually a cheaper option than brand new ones. It is notable that refurbished equipment serves their purposes well and is offered at a discounted price. When it comes to the vehicles, buying used cars instead of new ones can help in meeting the company’s needs to cut down the overhead costs.
However, when buying an car for use, it is important to ensure that a thorough inspection is done in its interior and exterior parts, as well as the paperwork to ensure that the car is still in good condition. Make sure the documentation is legitimate and tallies with the car model and what is stamped in the engine bay.
The above mentioned strategies can help greatly in reducing the costs of operation of the business and saving a lot of money for investment and expansion. Therefore, when starting a business they should be adopted and the mindset of employees be directed towards saving costs.
Is your job search turning into a grind with no end in sight? It may be time to take a step back and reevaluate your entire approach.
In cold weather climates, the beginning of spring is a time to clean the house and get organized—a practice known as spring cleaning. Through the years, spring cleaning has taken on a larger meaning with people using the time to organize and declutter things in their lives.
For professionals on the job hunt, a little spring cleaning (metaphorically speaking) could be a great way to reinvigorate your job search. Here are a few strategies your job search spring cleaning should include.
Reevaluate Your Job Search Approach
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Make a list of the last handful of jobs you applied for and see if you can identify any positive or negative trends. Consider things like:
How did I learn about this job?
How did I apply for the job?
Did I earn an interview?
What was the ultimate result?
A lot can be learned about your job search approach just by answering these questions and identifying patterns. For example:
Negative Trends
You discovered five jobs through job boards, applied to all of them via the job boards, and never heard back from any of them.
The common pattern here is applying through job boards. This isn't to say that job boards don't serve a purpose in the job search process, but they have their limitations, and you can't run your job search entirely off of them. When you apply through a job board, there's a good chance that your materials will never get past the applicant tracking system (ATS) and never be seen by an actual person.
One simple fix is to research who the hiring manager or recruiter is that posted the position and email your materials to them directly.
The more efficient fix would be to take a proactive approach by putting together a bucket list of companies that you want to work for and start making connections on LinkedIn with people who work at those companies. You may already know some people who work there or have connections that can refer you to some individuals.
This is a great way to network your way onto a company's radar.
Positive Trends
You applied to three jobs via referral, were invited to two job interviews, and made it through multiple rounds of interviews for one of the jobs before being passed over for someone with a little more experience.
The pattern here is that getting referred to a job by a professional acquaintance is a great way to land a job interview. This indicates that you're leveraging your network well and you should continue to focus on your networking efforts.
The next step is to review the interview process and determine what went well and what needs to be improved. Sometimes the interviewer will provide feedback, and that feedback can be valuable. However, not everyone is comfortable with giving feedback.
Chances are you probably have a good idea about areas of improvement and the skills you need to gain. Put together a plan for addressing those shortfalls.
The good news in making it deep into any interview process is that it indicates that the company likes you as a potential employee (even if the timing just wasn't right) and the experience could be a roadmap to a job with that company at a later date, or another similar opportunity elsewhere.
Give Your Resume & Cover Letter Some Much-Needed Attention
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Are you continuously sending similar resumes and cover letters to each job opening with only minor adjustments? If so, your strategy needs some serious spring cleaning.
The reason why it's so important to tailor your resume is that throughout your career, you acquire numerous skills, but the job you're applying for may only be focusing on 6-8 of those skills. In that case, those skills must rise to the top of the resume with quantifiable examples of how you successfully used those skills at previous jobs.
Remember, recruiters go through hundreds of resumes. They need to be able to tell from a quick glance whether or not you're a potential candidate for the position.
While updating your resume, you could also spruce up your LinkedIn profile by highlighting the skill sets that you want to be noticed for by recruiters.
As for writing a good cover letter, the key to success is writing a disruptive cover letter. When you write a disruptive cover letter, you're basically telling a story. The story should focus on how you connect with the particular company and job position. The story could also focus on your personal journey, and how you got to where you currently are in your career.
If your resumes and cover letters aren't unique, now is the time to clean things up and get on track.
Build Your Personal Brand
Just because you're looking for work doesn't mean that you don't have anything to offer. Use previous career experiences and passions to build your personal brand.
Ask yourself, "How do I want other professionals to view me?"
Pick an area of expertise and start sharing your knowledge and experience with your professional network by pushing out content on your LinkedIn and social media accounts. Good content can include blogs, social media posts, and videos.
By sharing content about your experiences and passions, you slowly build your personal brand, and others will start to notice. The content could lead to good discussions with others in your network. It could also lead to reconnecting with connections that you haven't spoken to in years, or making new connections.
You never know when one of these connections could turn into a job lead or referral. The trick is to get on people's radars. So, when you're cleaning up your job search, be sure to build a plan for personal branding.
Maintain Healthy Habits During Your Job Search
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Your job search is important, but it's even more important to know when to pull back and focus on personal health and spending time with family and friends.
There are actually things that you can do for your own enjoyment that could help your job search in the long run, such as:
Grab coffee with a friend - It's good to engage in light conversation with friends during challenging times. And if your job search does come up, remember that most people have been through it themselves and you never know when a friend may provide you with a good idea or lead on a job.
Volunteer - Volunteering is a great way to get involved in the community and help others. In addition, if you develop a little bit of a career gap while looking for a job, you can always talk about how you filled that time volunteering, if you're asked about it during a job interview.
Continue to focus on other passions - Are you a fitness nut? Blogger? Crafter? Continue to do the things that bring you happiness. And if you're in a position to profit from your passion through a freelance job or side hustle, even better!
Spring is the perfect time to clean up and improve your job search so you can land the job you want. If you're struggling to find a job, follow the tips above to reinvigorate your job search—and watch your career blossom!
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This article was originally published at an earlier date.
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