You already know by now that running a business costs money. You also know that the amount you pay out is taken away from the money you bring in via revenue. Of course, the problem here is if the former is too large, or the latter too small you will be left with a deficit rather than a profit, something that can put your business at risk of going under. The good news is there are many smart ways your organisation can ensure your business costs stay as low as possible. Keep reading to find out what they are.
Swap to a remote working operation
Another way to save a vast amount of operational costs is to switch to remote working. After all, when you do not have overheads such as building leases, office cleaning, power, and utilities to pay for you can keep your operating costs as low as possible.
Of course, to be able to successfully run your business as a remote operation you will need to provide the right equipment to your employees. This often means allowing each worker to use a laptop, as well as ensuring they have ergonomic furniture to ensure they can work safely at home.
Also, some businesses may not be able to go fully remote right away and that is OK. Instead, why not choose to allow employees to work from home for one day a week and build up from there? Then your company will be able to access the savings from a single day, for now, to increase these as you switch to a fully remote setup.
Opt for equipment that is used
For many organisations, a significant business cost is that of equipment. This can be things such as office equipment like laptops, computers, and photocopiers, or manufacturing equipment such as cutting lasers or vacuum molding machines.
However, whatever equipment your business requires to function successfully, buying it secondhand can help reduce the purchase price. There are even specialist dealers that trade exclusively in used equipment who will be able to service and warranty the items you buy, something that means you never have to worry about faults and breakdowns.
Go for a digital learning system
Another way to save a significant amount of money when running your business is to switch to a learning management system. Now, if you find yourself asking What is a learning management system? Don’t panic as we have the answer right here. A learning management system is an online platform for training that can simplify your HR significantly.
Indeed, by digitizing your staff training you can avoid needing to schedule costly days where large groups of people can’t work because of training. Additionally, a digital system is so much easier to manage that you can save money as you won’t need to pay people to do so much training administration either.
Reduce your power consumption
Whether used to run heavy plant machinery, or to keep the lights on in your office, your business will require power to function. Unfortunately, power does not come for free, and that means the more you use the bigger the bill you can expect at the end of each month.
Happily, there is a range of tactics you can use to reduce your business’s power consumption and so keep operating costs as low as possible. In particular, switching to motion-sensitive lights can be very helpful, as then they will only be on when there is someone in the area that needs to use them.
Additionally, investing in better insulation for areas where workers spend most of their time can help keep the air temperature more stable. Something that means you will need to spend less money in the summer keeping things cool, and less money in the winter heating things up.
Consider outsourcing some tasks
One of the most clever ways to reduce the operating costs of your business is to outsource tasks to a specialist. Indeed, for businesses, this option really is a win-win because they get the work they need to be completed by an expert, and they do not have to pay an entire year or more worth of salary.
The great thing about outsourcing is that it is a very comparative market which means, freelancers are often open to negotiations on the prices they charge. There is also a wide range of specialties that you can find freelancers working within from graphic design to HR and more besides.
Make use of interns
While you cant expect interns to be as qualified as your typical employees, they are often willing to work for significantly less money. Interns also tend to be hugely enthusiastic as well, as they are at the very beginning of their careers and looking for a sparkling reference that will secure them a permanent position.
Indeed, employing interns is a mutually beneficial situation because they get the training and insight they need into the real world of work, while you get a great deal on an employee that is likely to work particularly hard.
In fact, many interns go on to formal posts at the companies in which they intern, after proving themselves as more than capable for this position. Something that means your business will also be able to save a fortune on recruitment costs.
Logistics and packaging
There are plenty of savings to be made when it comes to logistics and the packing you use to ship your products from place to place. For example, you may consider using waste from other areas of your business as padding for your parcels, something that will not only save money but demonstrate your business’s eco-minded as well.
Additionally, it may be far cheaper to use shipping companies that allow your loads to be carried along with others that are already booked in. There are even websites where you can find this out now.
Four-day working week
A possible alternative to working from home full time, there are many financial benefits to a four-day working week that your business can reap.
Obviously the first of these is that you won’t have to pay for utilities for 5 days, savings that can really add up over time. Additionally, you will likely find that your employees are far more productive when working a four-day week, something that means economic gains related to more efficient use of resources including time.
Buy equipment
You might be under the impression that it’s cheaper to lease equipment than to buy it but this isn’t always the case. In fact, if you are paying a set amount each and every month, it may well be cheaper to buy the piece of equipment you need outright.
Also, it is worth bearing in mind that many governments offer tax relief for businesses investing in their own machinery, so you really could save plenty big with this option.
Travel less
Time was that business travel was just a fact of operating a company, but with modern tech, it is much less essential than before. Indeed, now it is possible to set up a meeting via Zoom, or even over live chat and hash out the details of decisions.
Happily, video chat is a low-cost way to communicate with people located all over the world. Although, an issue you may come across is a time difference between when your team, and the people you wish to talk to need to work. Something that may need to be resolved with a few late nights and some time in lieu. Luckily, that shouldn’t cost you anything at all!
Of course, by traveling less you can save huge amounts of money on car leasing, fuel, accommodation, flights, and other associated expenses. All of which can help ensure your revenue versus expenditure equation balances favorably.