Tips to cut your business costs
The bottom line of your business is the line that counts. Your profit is what drives your business, and while you focus on boosting sales and developing your product and service, you may have become complacent about other, less dynamic and exciting, parts of your business. Now is the time to take time out of your schedule to review where you can save on your expenditure.
The first port of call is to your accountants to get a breakdown of your expenditure. You expect costs to increase with inflation, but you can counterbalance these rises by being savvy with your spending.
If you are in contract with your utility providers, it is best practice to mark on the calendar when these contracts are due to end. However, do not just mark up the ending date, and instead, remind yourself a week in advance as you may have to give a notice of leave. Check your contracts to see what your obligations are. Use a comparison website to seek the cheapest rates available to your location. Do not just go for the cheapest day and night rates, but consider the daily charge; look at your previous usage for a set period and whether it would cost more or less for the same period. Remember too, that business insurance renewal rates can also be compared online. You need to take advantage of the information that is open to you to get the best deals.
Your employees do need to have the necessary equipment to fulfill their roles, but there are going to be areas where savings can be made. You need to do a full audit of what is in the office. This includes your IT. You are more than likely spending money on program software upgrades when licenses come to an end for an individual employee. Have a look at cloud based solutions that are paid for by subscription. Not only will be able to manage your monthly IT budget better because a fixed amount is taken each month, but your employees will benefit from being able to work uniformly, collaboratively and flexibly.
As we are now heading towards paperless offices, the need to stationery should be less than it was. If you have a routine order scheduled from a supplier, you need to review what you are getting. Is everything necessary? Check your stationery area for excess numbers of products. As business practices change, so do the tools that we need to complete the job. Do not forget to review the prices that your supplier charges. You may find that they are no longer the cheapest option. Research online for better deals, but do not be shy about picking the phone up and bartering. If you have been a long serving customer, they will be keen to keep you.
You can use this opportunity to ask your staff of their ideas to save money, you may be surprised at the suggestions they come up with. Even something like each member of staff bringing in a mug rather than using throw away cups can be a way of saving your business money, and will be a greener alternative. You may get requests from staff to work part-time, in which case this may be an opportunity to review their workload and take away tasks that can be undertaken by a member of staff that is on a lower pay scale; you may have to recruit somebody else, but in the long-term, this is an economical solution.