{"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

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