The two ways in which a business can become profitable is through either increasing its sales or by saving money. The latter is a great way to spend less, cut costs, and add to the bottom line of the business without the need to impact upon the experience of customers or without having to lay off employees. Some of the ways in which a business can save money are listed below for inspiration.
Use a Co Working Space
Regardless of whether a business employs one or one hundred staff, a co working space is a good way to remove the high overheads of having a dedicated office space to work out of. For smaller businesses, working out of such a space also helps to bridge the gap between a single proprietor working from home and a business expanding the number of employees that it has.
Give Staff Perks
Rewarding employees with free perks is sometimes actually better than giving them more costly benefits. This could include allowing staff to use resources within the business completely free of charge or things like shared Netflix or Spotify accounts.
Change Utility Provider
Shopping around for an electricity and / or gas deal is an easy way for any business to save money. It may even be beneficial to install an energy meter so that only the energy that is used is billed for. For Energy Meter Installations for businesses follow the link.
Taking a dive into the operational costs of a business is a good way of seeing where money can be saved. Get in contact with each and every supplier and work with them to renegotiate on prices. By making just one phone call a business has the potential to save a large amount on the cost of production supply alone.
Turn off Machinery
Leaving computers and machinery on overnight can add hundreds, potentially thousands, of pounds of unnecessary energy costs to utility bills over the space of a year. For bigger businesses with a large number of computers and machinery, the saving could be considerable. This is why it is important to ensure that everything that can be is switched off before leaving the office, warehouse, and / or factory come the end of the day, regardless of how insignificant it may seem.
A smart way of running a business is by outsourcing those none essential functions as it frees up time to focus on more important areas. Outsourcing abroad to countries like India or China is the cheapest option of doing this, although it may be equally cost effective to use local parents or students that are looking for some extra work.
Work from Home
With the practice of working from home having now become the norm for most people, businesses can utilize this by having all their staff do it, thus saving on the cost of renting out office space and all of the associated costs that come with that, such as utility bills, insurance, office furniture etc.