{"id":68995,"date":"2021-04-13T09:59:15","date_gmt":"2021-04-13T07:59:15","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=68995"},"modified":"2026-01-29T15:45:24","modified_gmt":"2026-01-29T13:45:24","slug":"how-to-spend-money-to-save-money","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/how-to-spend-money-to-save-money\/","title":{"rendered":"How to spend money to save money"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tHow to spend money to save money\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tViresh Harduth<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n

The current challenging business environment necessitates that people and younger individuals are financially savvy and equipped to make sound financial decisions.<\/p>\n\n\n\n

With revenue lines bashed up by the pandemic, many leaders have to make tough decisions to keep their businesses competitive. Cost-cutting is a possible solution. By taking ownership of the things you can<\/em> change, you\u2019ll give your business the momentum it needs to emerge from this difficult period stronger than ever.<\/p>\n\n\n\n

Essential expenses and, somewhat counterintuitively, spending money to save money.<\/p>\n\n\n\n

Let\u2019s look at both options.<\/p>\n\n\n\n

Back to basics<\/h2>\n\n\n\n

Getting small cost-cutting wins right away is a great way to build the momentum you\u2019ll need to tackle the bigger rationalisations.<\/mark><\/p>\n\n\n\n

Start by making a list of your business\u2019s variable expenses. Then, be ruthless about what you really need and cut the things that won\u2019t impact service delivery or negatively affect employee morale.<\/p>\n\n\n\n

Then, reorient your business around the things you\u2019re good at. If you have projects or initiatives running that you\u2019re unsure about, put them on ice and redirect that expenditure to high-impact, core projects.

\n\tDownload your free guide, 7 ways to take control of your business, and take steps now to master your business admin <\/a>\n<\/div>\n<\/p>\n\n\n\n

Alternatively, you could use the money you save to bolster your balance sheet and cash flow.<\/p>\n\n\n\n

If you don\u2019t ask, you won\u2019t get<\/h2>\n\n\n\n

Just as your customers might be looking for discounts, bargains, or payment holidays, you, too, can negotiate pricing with your suppliers.<\/p>\n\n\n\n

Rank your fixed expenses from highest to lowest and target those near the top. If, for example, half of your team work remotely \u2013 and will continue to do so \u2013 you could probably downsize your office space and reduce your rental expense.<\/p>\n\n\n\n

Other things you could negotiate include:<\/p>\n\n\n\n

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  • Leases on everything from printers to manufacturing machines,<\/li>\n\n\n\n
  • The speed of your fibre connection, especially with people working from home, and<\/li>\n\n\n\n
  • Your software service \u2013 shift from on-premise solutions to cloud-based accounting and payroll solutions for instant savings.<\/li>\n<\/ul>\n\n\n\n

    Look to technology<\/h2>\n\n\n\n

    Advanced business management solutions give employees direct access to their information, eradicate time-consuming back-ups and provide mobile, real-time access to business-critical information for improved decision-making.<\/p>\n\n\n\n

    They significantly reduce the workload on small and medium businesses\u2019 HR departments, allowing them to tackle more important tasks, like improving employee engagement.<\/p>\n\n\n\n

    Other technologies that could help you take control of your costs include:<\/p>\n\n\n\n

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    1. Customer relationship management (CRM) software<\/strong> \u2013 reduce the cost associated with lost invoices, neglected clients, and wasteful marketing activities.<\/li>\n\n\n\n
    2. Teleconferencing software<\/strong> \u2013 reduce costs associated with employee travel and workspace needs by enabling them to work remotely.<\/li>\n\n\n\n
    3. Energy-saving technology<\/strong> \u2013 reduce your energy bill by installing PV solar panels; get an energy audit to identify wastage; and install energy-efficient lighting and appliances.<\/li>\n<\/ol>\n\n\n\n

      Brainstorm with your team to identify the areas of your business where technology can take over mundane, rote, or admin-intensive tasks, so that they can focus on the projects and activities with the highest potential impact.<\/p>\n\n\n\n

      Clearly communicate your cost-cutting plans to your team and encourage them to take ownership of cost-cutting measures in their area of the business.\n

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      The Art of Being Paid <\/h2>\n\n\t\t\t\t\t\t\t\t\t
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      Chasing invoice payments doesn\u2019t have to be painful. Use this kit to answer a few questions about your customers, so you understand their payment drivers, then read our advice on how to flex your style for each, calling techniques and much more.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tGet your guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n<\/p>\n\n\n

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      Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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      Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      The current challenging business environment necessitates that people and younger individuals are financially savvy and equipped to make sound financial decisions. With revenue lines bashed up by the pandemic, many leaders have to make tough decisions to keep their businesses competitive. Cost-cutting is a possible solution. By taking ownership of the things you can change, […]<\/p>\n","protected":false},"author":812,"featured_media":456,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[25],"tags":[166,318],"business_type":[2],"lilypad":[],"context":[],"industry":[],"persona":[16],"imagine_tag":[348,64,73],"coauthors":[413],"class_list":["post-68995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-management","tag-cloud","business_type-small-business"],"sage_meta":{"region":"en-za","author_name":"Viresh Harduth","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-802944760_super.jpg","imagine_tags":{"348":"Business Continuity","64":"Cloud accounting","73":"Money Matters"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/68995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/812"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=68995"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/68995\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/456"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=68995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=68995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=68995"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=68995"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=68995"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=68995"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=68995"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=68995"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=68995"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=68995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}