What does it mean to be frugal? Amid the cost-of-living crisis, businesses are under pressure to perform while consumer spending nears an all-time low. Reducing unnecessary spending is critical.
As an entrepreneur, being frugal means being able to adjust areas for improvement and harness the potential of your most effective strategies. It’s about prioritising value and focusing on long-term outcomes rather than immediate gains.
Keen to learn more? Whether you’re only just starting or you’ve taken the leap into a new sector this year, it’s always worth knowing how frugal leaders can become some of the most successful.
How to be more frugal as a business owner: Three top tips
- Invest only in growth strategies
Try to focus on the projects and strategies most likely to make your business more profitable. Recent survey findings suggest that nearly eight in ten SMEs list rising operational costs as one of their top concerns, with three quarters equally worried about supply chain price hikes too.
As businesses make desperate attempts to mitigate soaring costs, fewer invest in new technologies, equipment, and machinery. New training programmes also prove too costly for many in the current economy, but neglecting these growth areas could be a key mistake.
Try to balance your cost-saving strategies with continued investment in areas that encourage growth for your business. Keep hiring new talent when you need it, and make sure to conduct thorough market research on competitors. Find out exactly what your clients seek from your service and listen to feedback.
- Optimise your logistics
An efficient purchasing process is a priority for online shoppers. More than 50% of all shoes and clothes online shoppers will pay more for next-day delivery, so businesses across all industries must meet and exceed customer expectations.
Order fulfilment starts in your warehouse and ends on your customer’s doorstep, so it’s imperative to make everything in between as efficient as possible. Tap into the latest trends and make sure that your service offerings align closely with those of your closest competitors.
Working closely with one trusted courier could help you stick to a budget and optimise route planning and delivery times. Additionally, same-day delivery services mean you can seamlessly surpass customer expectations.
- Minimise extra spending
Lastly, if you’re serious about being frugal, you’ll need to cut back on your spending.
From the extra complimentary lunches to spare office space, every detail could count considerably. Encouraging your staff to work on a hybrid basis will reveal the demand for your office space and network size too.
You can still cut costs without removing benefits or perks for your team, too. Try to install energy-efficient lighting and office appliances, firstly, since this will inevitably reduce the cost of your company’s energy bills.
You could go paperless, opt for in-house marketing strategies, or provide supplies ordered in bulk. Working in partnership with brands you need long-term could save you money in the future too.
