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How to reduce operating costs

How to reduce operating costs


Running an e-commerce store is a smart step if you’re looking to reduce costs because you won’t be paying for the expenses of a traditional store, also known as a brick and mortar store. But of course, you don’t want to stop your growth there. It’s always a good idea to explore whether it’s possible to reduce operating costs while maintaining a standard of excellence. In this blog we’ll discuss a few options that could potentially help you save even more time and money.

Budgeting

Let’s be honest here, budgeting is probably not the most exciting activity of our week. Nevertheless, the first step towards financial gain should always be an overview of your finances. If you’re not used to budgeting, you’ll be amazed at the results of a well-thought-out budget. Make sure to track everything that you spend when it comes to your business, tiny expenses can become unexpected surprises when left unmonitored for weeks, months and eventually even years. For some of us, making a budget is the easy part. The hard part is sticking to it. Planning ahead is a great recipe for success, but so is not giving up. So as always, chin up and try again after a failure.

Data

You’ve probably heard it before, don’t stress over things that you can’t control. Instead, focus on the things that you can control. As humans we have the potential to do incredible things if we focus on making the right decisions. The literature on a good decision-making process is vast and extensive, which is why we’ve always focused on the importance of education. A 2011 study at MIT concluded that data-driven decision making (DDD) performed up to 6% better than any other form of decision making. Andrew W. Lo, professor of Finance and director of the MIT Laboratory for Financial Engineering, explains that “for most companies, their data is their single biggest asset,” Unfortunately, many are still unaware and unappreciative of the potential gold mine that they possess. A gold mine that might just turn into a trash heap if it were to be neglected for much longer.

Platform

Committing to an eCommerce platform can be a difficult choice. Despite a plethora of options, there is no clear cut answer on what the best choice is for everyone. Why? Well, choosing a platform is like buying new clothes. We all have different body shapes, sizes, preferences, budgets etc. That’s why a tailor-made approach should help you find what is best for you and your eCommerce store. If you’d like more advice for your online store, feel free to contact us or consider signing up for one of our free webinars.

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