In the business world, the slightest drop in consumer spending can have a big impact on a company’s bottom line.
Thankfully, getting back into the black isn’t always something that requires drastic changes.
Making several small adjustments to the way you run your business can quickly add up to big savings. After all, if you look after the dimes, the dollars will take care of themselves.
Here are ways to cut the running costs of your business!
Don’t be Afraid to Outsource
Online marketplaces have made it easier than ever to attract reputable freelancers on short-term contracts. While they generally charge more per hour than a full-time member of staff, they can help you make savings elsewhere:
- Recruitment – the cost of finding and recruiting a full-time member of staff is significantly higher than sourcing a freelancer online.
- Employee Benefits – you don’t have to provide job perks, such as health or dental insurance, to temp workers.
- Flexibility – if you take on a full-time member of staff to complete a certain project, you’re stuck with the headache of where to redeploy them afterward. With a freelancer, you only pay for the services you need.
Renewable energy, like solar and wind, is fast becoming a viable alternative to traditional fossil fuels thanks to its continual reduction in cost. For example, in Australia over 15% of homes now use solar energy – the highest rate anywhere in the world.
Whether it’s financially viable to install solar panels in a business setting depends largely on three factors:
1) How long a company expects to stay in the same building.
2) The incentives offered by the state/government to use greener energy.
3) How much sunlight the panels are likely to receive.
Companies that have suitable premises could start to see a return on their investment within a decade. Inflation has seen energy prices rise over 10% in the last 12 months, so going green has never looked more appealing for business owners.
Ditch Printing and Postage
With postage costs rising year on year, there’s never been a better time to switch to email. Corresponding with your customers this way is not only more cost-effective but also a lot faster.
Instead of printing new, up-to-date brochures or leaflets every year, try using PDF versions instead. You can make these available to your customers either through your website or via email.
It’s not uncommon for suppliers to offer discounts for those that pay their invoices quickly. If you have the cash flow to be able to do this, it’s a no-brainer.
As well as the long-term savings, paying quickly will also help to keep your suppliers on your side.
Consider Used Equipment
Do your employees need brand spanking new laptops to get their work done? Or could they get by just as well using second-hand equipment that has a similar spec?
This thrifty approach doesn’t just apply in terms of electronics equipment. Furniture and decorations, which can help to improve a working environment, can also be bought second hand.
Travelling all over the country to meet prospective clients or suppliers is a thing of the past. Nowadays, you can save huge sums of money by carrying out meetings online through software such as Skype.
If you’re feeling the squeeze, consider downsizing and allowing some employees to work from home.