How Businesses Can Use Technology to Reduce Costs

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How Businesses Can Use Technology to Reduce Costs

How Businesses Can Use Technology to Reduce Costs

There are a lot of different ways to save money on bills; from the technology you use to run your business to the kind of business deals you’re able to secure. What you want to do is find big areas where you can cut massive chunks from your operational budget. One such way is to use technology to help you reduce costs for your business.

Nickels and Dimes Add Up

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To start looking for ways to reduce costs, a very wise choice is finding areas of financial “overlap” where there are wasted funds. Clock-milking is an excellent example. Oftentimes employees are required to be clocked in within a certain window of time, and clocked out within a certain window of time.

So say, for example, your shift is from 7:00 am to 7:00 pm. But you can clock in as early as 6:30, and clock out as late as 7:30. Well that’s an extra hour a day! In a six-day week, that’s an extra six hours. In a month, it’s an extra 24 hours. In a year, excluding holidays, that could be 312 hours. At $15 an hour, that’s $4,680 a year.

If you’ve got fifty employees milking the clock like that in your organization, that’s approximately $234,000 a year. Cutting out that overlap is essential, and there are solutions which can do this, like Clockspot. Clockspot is a modern innovation that, according to the site, is: “Perfect for small businesses, franchises, and mobile teams.”

From The Cloud To China: Substantive Solutions For B2B Transactions

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With apps like Clockspot, you can use the cloud so employees can clock in and out remotely; that means they only are “on the clock” during their established shift. Now imagine the same kind of thinking as regards business transactions. In Yiwu, China, production of cheap goods funds the dollar store industry.

Buyers will purchase as cheaply as they possibly can, and in bulk. Many of these transactions are digital. Digital transactions traditionally come with a credit card processing fee. Now if you’re pursuing a thousand bulk purchases from varying businesses at $1 per transaction, you’re looking at $1k in un-avoidable additional expense.

Or is it beyond avoidance? Are there ways to avoid or diminish credit card processing fees between businesses? As a matter of fact, there are ways to do this, and many savvy business owners are wise to pursue them, though many aren’t so savvy, and as a result find themselves not nearly so competitive. Sometimes this is by design, mostly it isn’t.

Still, there are definitely ways to save when it comes to B2B credit card processing – Dharma Merchant Services “can help you get access to reduced interchange rates,” and “Merchants processing over $100k/month get high-volume rates.” High-volume rates equate to decreased transaction fees, rewarding you for being profitable—as the market should. The better you do, the better they do—and then you save even more. It’s a positive upward spiral.

Due Diligence In Terms Of Investment Strategy

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Another means of conserving assets is to keep tight numbers on your marketing outreach such that you can establish a line of positive and increasing ROI. Return On Investment is an essential component of success. You need to find which outreach options work, and encourage them. By the same token, discontinue unprofitable ends.

A final consideration here is keeping your finger on the pulse of digital innovation. Remember Bitcoin? As of December 11th, 2017, this currency is pushing $15k per bitcoin. People were giving this cryptocurrency away when it was initially established. As a business, you want to find burgeoning trends like this and invest accordingly.

You don’t have to wipe the whole budget. As per the hypothetical outline at the beginning of this writing, you could save $200k+ a year by consolidating your timekeeping solutions, turning that into diverse potential currency investments, and sticking with the one that returns you profit.

About The Author
Harry Carver
Harry Carver is TheHTS resident science nerd and super gamer. As well as researching and learning about physics and chemistry, he enjoys playing the mad scientist in his home lab so be sure to watch for his chemistry and science videos here and on our YouTube channel. He has a dislike for social media, but you can find him on Linkedin should you want to know more.
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