10 Tech Advances Leading the Way in Keeping Business Costs Low
Keeping business costs low is a priority at the moment because of economic situations and world pandemics. But it’s not as easy as cutting costs, and you need a little help sometimes. And that help often comes in the form of new technologies. You can begin using some helpful tech right away, such as apps and services. But others can take a while to incorporate into your business model. Here are some of the best uses of tech to help reduce expenses.
Managed Payment Cards
It’s all well and good having company credit and debit cards. But they can be abused by employees. Additionally, spending can be hard to track when you have to go through thousands of transactions per month. Fortunately, you can manage payment card issues and assign specific things. For instance, fleet and fuel cards like Coast are accepted at Visa terminals for fuel only. This means your drivers can only use them for filling up the cars. And you can set limits, assign users and track every purchase made, keeping costs to a minimum.
Accurate Positioning
Even today, standard GPS systems aren’t as accurate as we would like them to be. They can still send delivery drivers down dead ends, blocked roads, and even to non-existent places. And all this can end up in increased fuel bills. But new technologies and apps like What 3 Words are leading the way in more accurate positioning. W3W, for example, assigns unique identifiers to each square meter of the entire map of the world. Meaning no more detours when drivers are delivering your services. As a result, fuel costs less and customer rating goes up.
The Cloud Helps with Keeping Business Costs Low
Cloud computing has changed the way businesses operate. Currently, over 90% of companies use the cloud, from the smallest to the largest. It works by accessing core services over a web connection rather than on your local PC. Some examples include office software, collaboration apps, and operating systems. In addition, cloud computing reduces costs because you don’t need to buy expensive software. Instead, you access the software remotely using logins that you pay for at a fraction of the price. Great for starting out, better for adapting to a new world.
Reliable Cybersecurity
Hacking is one of the biggest risks to a modern business. It can cost tens of thousands to recover a compromised system. And most companies that suffer a data breach don’t fully recover. Therefore, you must take cybersecurity seriously. Foryuanety, even the most basic malware protection packages offer substantial protection. But if you feel you need more, then outsource to a managed IT service for a low monthly fee. These experts can help you with backups, malware protection, data migration, cloud systems, and employee security.
Employee Performance Tracking Software
Employees are there to do their job. That’s what you eat them for. A poor employee costs you money, so you need ways of tracking performance. Tracking employee performance is considered draconian by some people. But why should you pay someone for not doing their job? Performance trackers don’t need to be overbearing. You simply need to ensure each employee is doing what you are paying them for. Otherwise, you are wasting money. Performance can be as simple as worked hours or as complex as project management.
BONUS: Best Apps for Tracking Business Finances
Running a business is hard. And financial management is another layer that can add to your stress. Of course, you could pay an accountant to manage your finances, but that’s just another expense. A cheaper option is financial apps. Some of the best apps for business include:
- BizXpenseTracker: suitable for small businesses.
- Expensify: Great for receipts.
- Concur Mobile: Tracks travel spending.
- Goodbudget: Easiest for beginners.
- QuickBooks Online: Most comprehensive finance app.
- Wally: Geared towards millennials.
- Everlance: tracks mileage.
As a business, you could use one or multiple financial apps. All of them are great and provide tools for one or more things. But used together, they offer a complete financial suite for managing expenses. Even subscribing to all is cheaper than hiring an accountant.
Video Conferencing Apps
Throughout the pandemic, video conferencing apps like Zoom became more popular with the general population. Where they were once used by a handful of people, they are now standard. But the beauty of these is that they are free and reduce the need for face-to-face meetings. In the short term, you can save money by not traveling. Over the longer term, you can incorporate video apps into your office culture, minimizing the number of people needed on-site. Therefore, you could move to a smaller location that costs less money in terms of rental.
AI-Driven Process Automation
AI is at the forefront of modern technology. While it’s nothing like the movies, it is slowly taking over processes. Where AI shines is in process automation for repeated tasks. Of course, it’s never good to lose a job to a machine. But from a business perspective, a device can sometimes do a much better job at a much lower cost. In addition, fewer employees mean lower insurance premiums, reduced health and safety costs, and lower salary commitments. AI automation can’t do everything, but it’s great for simple manual and digital tasks.
Keeping Business Costs Low with Digital Communication
The telephone changed the world. Instant communication to anywhere in the world brought businesses together like never before. But phones cost money. Mostly because intercontinental lines are expensive to maintain. But digital communication technologies all but negate the need for a traditional landline, and they are expected to be phased out by 2025. Instead, they are being replaced by digital lines such as ISDN and VoIP. And let’s not forget the good old email. Most digital comms technologies are either free or cost much less than standard lines.
Dropshipping and eCommerce
A new way of doing business is to work with a supplier directly to bring in a steady stream of customers. As long as you can provide sales to a supplier, they will cut out warehouse expenses and ship directly to your customers. This is called drop shipping and is the main way eCommerce businesses work. Because of its efficiency, the eCommerce model is becoming the norm. Therefore, it isn’t uncommon to find a supplier operating a full-scale distribution center that takes orders, picks, packs, and ships. This is how Amazon keeps its costs low.
Social Media Engagement
If you don’t use social media for your business, you miss a golden opportunity. Not only does social media allow you to laser target ads to customers most likely to buy. But you can also engage with customers who love your product. When customers love your product, they share it with potentially millions of people. This is FREE advertising that doesn’t cost you a penny. And you aren’t doing any of the work either. This social media engagement model is how companies like Primark in the UK are able to keep their costs lower than competitors.
Summary
Technology is fantastic for many reasons. But as a business, you can use multiple technologies to keep the cost to a minimum. Some tech is easy to use right away, while others require a slow progression into your business model. Some of the best tech to begin using right away include managed payment cards for fuel, cloud computing, and employee performance trackers. Additionally, you can lower long-term costs with AI automation, video conferencing, and switching to an eCommerce model. And don’t forget that social media is free advertising.