Most of the small businesses fail in the first few months due to focus on increasing sales but completely neglecting the other factor which is lowering expenses to be profitable.
We have listed down a few money-saving tips which will help your business be profitable;
Cut on Power Consumption:
After work hours, make sure that all the workstations are shut down and all the machines are off. This is a straightforward approach which saves huge electricity bills.
Use Passive Energy Saving Methods:
Design the office to be power efficient such as the use of solar water heater. Make sure all window panes are tightly sealed to avoid heat loss, use efficient curtains, preferably blackout to minimize light intrusion. Also, use an efficient thermostat to climate control the office and avoid power loss.
Reduce Paper Use:
Printing also adds up to the overall expense of the company. Cut down hard-copy work and switch to digital documentation. This will save the cost of paper and printing. This is environmentally friendly as well.
Encourage intercommunicating and discourage official travels. This will save a lot of money spent on tickets and stay. Video conferences can be arranged and con-calls can be done instead.
Control Location Cost:
Not all office area rents cost the same. Figure out the amount you are ready to pay for office space and the office rents in various locations. It is advisable to rent an office in a place which is not very pricey but again the area should not be in the outskirts. Maintain a balance between both.
Switch to Social Media Advertising:
Traditional advertising is quite expensive. The latest trend is to advertise on social media as most of the people use it on a regular basis. Social media advertising is comparatively cheaper than tradition advertising methods. You just need to hire an individual dedicated to building your companies brand online.
Buy Second-hand Machines:
You do not need to buy all brand-new pieces of equipment. You will save a lot of money buying gently used machines such as printers and workstations. As and when your company grows, you may replace these pieces of equipment with new ones.
Use Space Efficiently:
You can save a huge amount of money if you rent out a not so huge space. Companies are becoming more and more efficient in utilizing the available space. For example, conference rooms are not always in use hence they can be used as a multi-purpose room like a break room.
Another effective way of space saving is to de-clutter the office space by storing away old documents and files digitally and destroying the hard-copy. There are certain documents such as audits which cannot be destroyed and needs to be stored along with unused machines and equipment. If your business objective includes supply of goods and receiving them, then we need to allocate storage space for that as well. Using office space as storage can become a costly affair. An alternative is to use a self-storage facility such as self storage Michigan City to store away all extras from the office in a cost-effective way and also saving office space.
We have listed generic ways of saving expenses, but every business is different, and you definitely cannot limit certain expenses. Be smart to identify which expense needs to be made and which can be avoided. Small cuts can make a lot of difference in the final profit numbers.