Overhead expenses, which take up a significant chunk of revenue, are an obvious place to start, but your most significant cost savings could come from making a series of smaller cuts and implementing innovative solutions. 

1. Go paperless
The cost of paper and ink may seem insignificant, but it can add up to a big business expense over the course of a year.

It’s a commonly recurring business cost that you can reduce by encouraging employees to be mindful of paper wastage and to stick to the following rules: Reuse waste paper for notes instead of throwing it away; set all work computers to print double-sided by default; print documents in a smaller font, and file important documents on your computer instead of in a portable file.

2. Flexible working arrangement 

The cost involved in renting an office, coupled with furnishing and other daily and monthly overheads, is such an expensive affair, especially during these tough times.

To help manage these costs, you may consider adopting a flexible working style where your team can either work remotely or in a hybrid model with frequent virtual meetings to keep the human interaction going.

Using co-shared working spaces is another option where you only pay for the day that you need to be in an office environment. This way, you will not have to worry about office running costs as these spaces cater to all your office needs.

Some even have an unlimited supply of coffee! Lastly, move to a smaller office and have your team come on a scheduled basis. For instance, have each department come in on a specific day of the week. This way, you get to maximise the small office efficiently.

3. Reconsider traditional services
A long-term contract for cleaning can result in expensive monthly bills and may not suit your small business’s needs. A cost-efficient alternative is to hire cleaners only when you need them to come in once or twice a week with pre-vetted, trustworthy cleaners. 

Doing what you can to keep staff healthy makes good financial sense, too, as sick workers can slow down productivity. With August being Nigeria’s coldest month, Awazi Angbalaga, SweepSouth’s Country Manager, suggests a weekly clean of keyboards and desk phones to stop your office from becoming a germ-filled battleground. “Our hands and the surfaces we touch are the superhighways for germs, and because we touch our phones and keyboards so often, they top the list of the dirtiest items on our desks.

A cleaner can wipe down frequently-touched objects with a disinfectant on a weekly basis to keep them clean,” she advises.

4. Leverage social media advertising
Truth be told, traditional advertising is so expensive that many small businesses can’t afford it.

Paid social media advertising is much cheaper and will provide a savings opportunity, but if even that is too much for you to afford right now, you can build your company’s social media following organically on Facebook, Instagram, LinkedIn, Twitter, and YouTube.

It is a much slower process, but it won’t cost you anything. You will also be able to authentically express your brand’s personality and build trust with your audience. The only cost will be your time, and a firm commitment to be regularly active and proactive on the accounts you’ve created. 

5. Use freelancers and contractors for non-core work
Contracting out the jobs in your company that don’t require full-time employees can help cut overhead costs. Freelancers and interns are useful for one-off projects and non-core activities, such as data entry or document processing.

They’re easier to hire and cheaper to employ, as you’re not expected to provide them with costly benefits like medical aid or leave. Make sure though, that you have proper contracts in place to set expectations and mitigate risks, for both parties.

Bear in mind that freelancers may not share the same loyalty and passion for your business as full-time employees, so it makes for sound business practice to balance your staff complement by hiring a combination of both full-time employees and freelancers.

6. Switch off lights, machines and computers after hours

To help keep energy costs under control, make it a company policy to switch off air-conditioners, non-essentials lights, gadgets and equipment before staff head off home each day. Putting computer monitors into sleep mode will also cut down on unnecessary energy consumption and save money.

If you run your business from a home office, make the switch to LED bulbs and opt for energy-efficient appliances to help reduce your monthly electricity costs. For a longer-term solution, consider a hybrid solar system that includes batteries for backup, while keeping a lifeline connection to the grid.

This will make it possible to use essential appliances, such as a laptop and routers, in case of a power outage ; with minimal disruption to your business.

7. When in doubt, go without
If you’re struggling to allay costs, make it a practice to constantly ask: Do we really need to buy this? Do we really need to replace something?

Think every purchase through instead of just spending the money on buying bigger and newer things.

Even when times aren’t tough, it’s prudent to use what you already have until you are certain you need something new.

Cutting costs shouldn’t just be a periodic exercise to improve your bottom line. Good business practice dictates that you should regularly evaluate all operational expenditure.

This will assist you in growing your bottom line and reducing the risk of cash-flow trouble in the future, as well as helping you become a more efficient business overall.

As we hope for things to get better, here are five suggestions on how to save money at home.

1. Review current expenses

Start by listing all your monthly expenses, such as rent, food and groceries, transport, airtime, power, water, personal upkeep, and so on. Analyse each item critically, as this will paint a clearer picture of your spending habits and give you an indication of what you can cut back on and what you can do without entirely. 

Memberships and subscriptions are loopholes for spending money unnecessarily because people tend to pay and not utilise these services accordingly.

Check how you use your monthly TV subscriptions or gym memberships, and consider cancelling them if they are hardly used or switching to less expensive packages that suit your needs.

Upgrade when necessary or over the holidays when you have more time to spare. The same applies to internet services as well.

2. Shopping options

Take the time to identify multiple service providers and retailers for price comparisons. Doing this will help you settle on cheaper or more affordable alternatives to fit your budget.

Another cost-saving tip is to consider bulk buying non-perishable items, which is becoming increasingly popular in Nigeria as more people move towards bulk shopping from wholesalers.

If you live alone and are concerned about the quantity of the goods, pair up with someone else and split the items with them. 

Don’t shy away from signing up for reward programmes commonly referred to as “points” offered by local supermarkets.

They always come in handy when you have stretched your budget, and you can use them to top up the difference. Keep an eye out for daily or weekly bargains on household items frequently advertised by supermarket chains.

Also, start planning your meals on a weekly or monthly basis. A meal plan guides you when grocery shopping, helping reduce food wastage because you only buy what you need for the meals.

This is especially true of groceries, which we are all guilty of purchasing in excess from time to time.

3. Outsource help

Releasing your live-in housekeeper and scheduling a domestic worker from SweepSouth Connect to come in once or twice a week to clean your home is a viable cost-cutting approach if you live alone, have older children, or other adults staying with you. Assign the remaining light responsibilities to the rest of the household. 

“Security and safety are important to us, and all our staff go through thorough vetting before enlisting their services,” says Awazi Angbalaga, Country Manager for SweepSouth Connect Nigeria, an on-demand online home cleaning service platform that connects people with trusted domestic professionals.

“We understand the need to have someone trustworthy in your home. Once you’ve given instructions, allow them to carry out their tasks with the confidence that the cleaning will be completed to the utmost standards,” says Angbalaga. 

“Getting in a cleaner to help you with time-intensive chores like windows, cleaning kitchen cabinets, the fridge and oven, so that your house looks sparkly clean, frees you up to be able to spend time on other responsibilities you may have,” she adds.

For homes with two housekeepers, consider letting one go if you can no longer afford both and hire help as and when the need arises. 

4. Save energy

Electricity is one of the most costly but necessary household expenses. Switch from the ‘normal’ light bulbs known as incandescent bulbs to LED bulbs as they are more energy-efficient and last longer.

Carefully select and use the most energy-efficient settings on your washing machine and run it only once or twice during the week. If you have a dryer, rather hang your clothes outside to dry.

Layer up, whether inside or outside the house, to keep warm so that you won’t have to use heaters unnecessarily.

Other small tips, like ensuring the lights are off when not needed, and taking shorter showers go a long way. Cooking in bulk and freezing the food saves gas and time. It also comes in handy on days when you can’t cook for one reason or another, and then you have ready-to-go meals.

5. Lifestyle 

We all like to enjoy the little joys and comforts that life offers. However, when tough times call, we should be ready to scale down on these luxuries. 

Reduce the number of times you eat out or buy take-outs in a month. It will save you more money and is also a healthier option for you in the long run.

Carpool to work or other engagements with a friend or relative who lives in or around your neighbourhood. Share the cost of fuel or alternate cars every week. Examine how much you spend on grooming each month, and do what you can at home.

There are many ways one can cut costs on the home front. However, for this exercise to be successful, honesty with oneself is required to make an informed judgement when making the necessary changes.

If you struggle to be honest with yourself or you need assistance, consider engaging a financial planner to help you shift your focus to the right things, put your money into perspective, and give you sound advice.