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Innovative Cost Saving Ideas

Find out where you can start looking in your business to develop some innovative cost saving ideas that could not just save you money, but increase your profits.

You will learn

  • How to make money from your waste
  • Tips for increasing efficiency
  • Ideas for removing things that don't add value

Innovation does not have to be a massive change to a business, like a big new product launch, dramatic change to a service, or serious adaptation to the production line. Smaller innovations that improve some part of your business can make longer lasting positive effects on your business – especially if you focus on innovative cost saving ideas.

When talking about innovation, people tend to focus on things being brand new, and never seen before in the market. However, that is not necessarily the case. If a product, service or process is new to your business, then that is an innovation. You do not necessarily need to have had the idea for the change yourself, as long as it is something that your business has not seen before. Has another business developed a more efficient way of producing a similar product to yours? Learn from their methods and adapt your processes to suit your business.

There are lots of ways that you can bring innovative cost saving ideas in to your business, and the best place to start is to look at the types of waste your business is producing. By looking at what you are throwing away, you can often come up with innovative solutions to convert them in to something profitable, or to increase efficiency.

business team developing innovative ideas

Turn Waste in to Profit

Anything that is wasted in a business is an additional cost, especially if you are having to pay to have it sent to a landfill site. It is highly unlikely you will be able to eliminate all waste from your business, but it is likely that you will be able to convert what you are wasting in to something commercially viable. There is a big market for different types of fuels, and if your business is producing a lot of food, wood or cardboard, or agricultural waste, it could be likely that with some innovative thinking, you can convert that in to some kind of bio-fuel. You can then sell this by-product, rather than having to pay to have it taken away, meaning that you are not only cutting costs, you are actively making a profit. Further, it is more sustainable than sending your waste to landfill.

Increase Your Efficiency

Sometimes, it is necessary to spend a little to save a lot. If the way you manufacture your products or deliver your services is outdated, it is likely that you are not as efficient as you could be. Innovations in processes to increase your efficiency or streamline your service can save your money in the long term. You can identify parts of your production or service that take the most time to achieve and see whether you can implement a change that reduces it.

team being innovative to increase efficiency

Remove Features That Your Customers do not Use

If you offer a product or service that has lots of different functions within it, take some time to evaluate whether or not it is actually adding value to your customers. There is no point continuing to develop something that people do not use or want to buy. Take a look at the reviews of your businesses and see what consumers of your offer are saying, or conduct a market test to get some direct feedback. If there is something they love, develop it further and see if you can increase its value, but if there is something that your customers do not like or do not find useful, take it out. There is no need to spend money providing something that is not valuable to your customers. You will still be innovating, as you are making something new to your business that is commercially viable.

For tips on how to conduct a market test for your business, click here for advice written by one of our experts. 

If you have got some innovative cost saving ideas that you think would help improve, and maybe even grow your business, drop us a line by emailing support@howsbusiness.org. We will be able to have a quick chat with you about your plans, and will likely be able to match you with a funded support provider to help you achieve your goals.

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Written by:

Beth Ellin

How's Business content writer

Email Address: beth.ellin@howsbusiness.org

Telephone:

Website: http://www.howsbusiness.org