How to manage business subscriptions and reduce waste

Subscriptions are a surprisingly big part of running a successful business. Regardless of industry or business size, most businesses pay for services on a regular, subscription basis, such as cloud-based software and industry memberships. These services help businesses to stay competitive, flexible and up to date with what competitors are doing.

However, if you don’t keep an eye on your business’ subscriptions, they can sneakily take up a lot of time and money. Knowing how to properly take care of business subscriptions not only saves you money, but it also reduces waste.

Getting to Know Business Subscriptions

A business subscription is a long-term contract to use a product or service, usually paid monthly or annually. With a subscription, you get ongoing access, updates and support, which you don’t always get with a single, one-time purchase. Subscriptions are likely to make up a big part of what you need to run your business. You can sit back and relax, knowing your employees have access to the tools and services they need, when they need them.

There are various business subscriptions available, and the subscriptions you use will depend on the type of business you have. For example, you might use cloud software and SaaS tools like accounting software, project management tools and collaboration tools. You might be part of professional groups that are specific to your field, or you might have signed up to magazines that are specific to your industry. IT services – like cloud storage, managed IT support and cybersecurity services – are also regularly managed on a subscription basis. Most businesses have a few subscriptions on the go at any one time and there’s nothing wrong with that, as long as they’re being used effectively.

The Hidden Cost of Not Managing Business Subscriptions

Subscriptions can make running a business smoother and simpler, but if you don’t regularly keep track of them, they can cost you time and money.

• Duplicate services are common, meaning you’re paying for more than one service or software that does the same thing.
• You might be paying for licenses that aren’t used by enough people, or the people using the licenses have turned their attention elsewhere.
• Automatic renewals often happen without anyone noticing and result in payments for services that are no longer needed, or price increases you didn’t agree to.
• You might still be paying for tools that are old and actually slow down work, costing you more in employee hours than you’re saving with the tool or service.

 

It’s important to remember that subscription waste isn’t just financial, it can also make your digital life messy, confuse staff, hold back productivity and have a negative impact on the environment.

Cut Down on Waste by Keeping Track of Your Subscriptions

Don’t underestimate the impact that regularly looking over and improving your subscriptions can have.

• You can save money, and spend more on other areas, by cancelling or downgrading plans for services you don’t use.
• You save time by not having to manage accounts you don’t need and not having to keep track of more than one subscription.
• Combining tools in one subscription makes it easier to get things done and makes it less likely that things will go wrong between platforms.
• Cloud computing and IT infrastructure use a lot of power. If your business stops using things it doesn’t need, it will have a smaller carbon footprint.
• You can make better investment choices by keeping an eye on how the subscriptions you’re paying for are actually being used.

 

How to Deal with Multiple Business Subscriptions

Check All of Your Subscriptions Thoroughly

Write down all of the subscriptions that are still active and make a note of the service, vendor, monthly or yearly cost, how many licenses are in use, date of renewal and how often the service is used. This makes it easy to see where money is being spent and which subscriptions you might not need.

Identify Your most Impactful Subscriptions

Not all subscriptions are used the same, and not all have the same impact on the business’ success. Think about if all of the licenses are being used, how much the service benefits the business, and if there’s a cheaper option that would work just as well. This helps you find subscriptions that aren’t being used enough, and any that are costing you more than they should.

Check Renewal Dates

Don’t let renewals happen without checking them first. Set reminders a few weeks before your renewal dates to see if you still need them. This makes sure you only pay for the services that are still helpful to your business, and don’t accidentally sign up for a year of something you no longer need.

Always Keep Track of Subscriptions

You can’t just manage subscriptions once or twice a year, you need to constantly stay on top of what you’re paying for and what’s being used. Every few months, have someone go through all of your business subscriptions. This gives you the chance to get rid of anything you don’t need straight away, rather than waiting until the end of the year and paying for longer than you need to.

Encourage Shared Access

For tools that allow shared accounts or team licences, make sure all of the licences are fully optimised. This can reduce the number of separate subscriptions needed, and gets the most out of the investment you’re making.

Speak to Your Team

Get your employees to tell you about tools or services that aren’t getting used as much as they should be. They’re the people working with them day-to-day, so they’ll know what’s being wasted. It’s not uncommon for employees to keep using tools out of habit, even when there are better ones available.

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