I’ve been masterminding with some of my fellow online biz friends the past few weeks, chatting about the crazy prices we’re all coughing up to keep our small virtual businesses afloat.
This past weekend, I got a crushing email from a popular blogger in the online space. She’s not just stepping back from her business; she’s jumping out of the space with a full-blown fire sale.
I don’t know her entire story, and I’m not in any place to judge her, I wish I could help her. We never know all the details and I wish her nothing but the best!
It’s so painful to watch it happening to anyone – BUT – This whole fiasco shines a spotlight on a supercritical, yet often overlooked aspect of our businesses – the art (and it is an art) of keeping our operational costs in check.
In this guide, we’re going to dive into seven strategies to trim down those monthly expenses that keep eating away at your profits.
Here’s looking at you, monthly memberships!
These tricks of the trade are designed to help you slash those operational costs before we bid adieu to 2023, setting you up for 2024 that’s more about profits and less about needless spending.
1. Audit Your Subscriptions
Immediate Action: Review EVERY SINGLE TOOL! Create a spreadsheet or google doc Add in all of your current subscriptions and memberships. Cancel those that are not essential or have not been used in the past three months. This includes software subscriptions, online tools, and membership-based services. Don’t forget to check Zoom, Ontraport, Infusionsoft, Zapier, etc, where can you find opportunites to lower costs?
Long-term Benefit: Regularly auditing subscriptions can save you a significant amount annually. It’s easy to overlook small recurring costs, but they add up quickly.
2. Negotiate with Service Providers
Immediate Action: Contact your current service providers (like internet, phone and cell phones, hosting services, and business credit cards) and negotiate for better rates. I promise, as tedious as this is, it will pay off in the long term. Mention competitor offers and ask if they can match or beat those prices.
Long-term Benefit: By negotiating better rates, you can reduce monthly expenses and potentially upgrade your services without additional costs.
3. Utilize Free and Open-Source Software
Immediate Action: Replace paid software with free or open-source alternatives. Many open-source tools offer comparable features to their paid counterparts.
Long-term Benefit: This switch can drastically cut down on software expenses, freeing up funds for other critical business areas.
4. Streamline Communication and Collaboration Tools
Immediate Action: Consolidate your communication and collaboration tools. If you’re paying for multiple platforms that offer similar functionalities, choose one that best fits your needs and discontinue the others.
Long-term Benefit: Streamlining tools not only cuts costs but also improves team efficiency and reduces confusion.
5. Opt for Bundled Services
Immediate Action: Look for bundled services that offer a combination of tools or services you need at a discounted rate. This is often seen with web hosting, email, and domain registration services.
Long-term Benefit: Bundling services can lead to substantial savings over time and simplify vendor management.
Reducing operational costs is essential for the sustainability and growth of your online business.
By implementing a few of these simple strategies, you can significantly lower your monthly expenses and set your business up for increased profits in 2024.
Remember, the key is to regularly assess and adjust your operational strategies to align with your business goals and market changes.
Need help finding ways to simplify your operational expesees? Book a 30 minute consult here!
