If you are looking to add to your company’s piggy bank, it is quite likely that it is impossible to do so without making small changes to offset Expensive Business Costs. With this in mind, here is the ultimate guide to reducing business operating costs so that you can save money for the future.
1. Minimise Spending on Utilities
According to Money Supermarket, the average small business spends £820-£1,458 on gas and £2,367-£3,660 on electricity annually. After you factor in your water rates, internet, and rent, this number can increase even more.
2. Rethink your Office Space
This doesn’t mean you have to downsize, as there are many ways that you can creatively rethink your office space. One way you can reduce spending on your utilities and maximise your office space is by using serviced offices. A serviced office has all-inclusive pricing for a flexible monthly package to suit businesses of every size.
3. Outsource where Possible
Outsourcing allows you to get jobs done without having to pay for one of your full-time employee’s salary or overtime, and it is especially effective in regard to customer services. Even better, this frees up your employees to focus on their specialist tasks and thus increases productivity.
4. Make the Most of your Time
As you are presumably taking a wage away from your company at the end of the day, every minute of your time has value. Therefore, it is essential to make the most of your time, and delegate tasks to others if it would be more efficient.
5. Utilise Technology
Technology has made many advancements over the years. Cloud computing, automated processes, AI, and chatbots are a great way to offset your business costs.
6. Reduce your Carbon Footprint
Reducing your carbon footprint might entail reducing energy usage, minimising waste, using energy saving appliances, and encouraging employees not to print or commute where possible. In doing so, you will in turn reduce expenditure, plus it will make your business seem more climate conscious.
7. Pay Bills and Invoices Early
Some companies may offer a small discount for bills and invoices that are paid early. On the other hand, the interest accrued by paying them late can be extortionate. Therefore, it is always best to pay any bills or invoices early, or at least on time.
8. Conduct Meetings Over the Internet
If there is one thing that the coronavirus pandemic has taught us, its that business trips and conferences are unnecessary when you have video conferencing software. Instead of paying for hotels, travel, and other expenses, conduct meetings over the internet or the phone.
9. Buy things Second Hand When you Can
You can find a wide range of things being sold second-hand which is basically like new, but a whole lot cheaper!
10. Purchase Inventory in Bulk
Last but not least, purchasing equipment or other inventory in bulk can save you a lot of money in the long run. In fact, one study found that shoppers can save around 20% on their purchases by opting to bulk buy.
With these things in mind, you will be able to offset unnecessary expensive business costs and save a lot of money. By making the suggested cuts and changes, this will allow you to reinvest your saved money in the future, helping your business to grow.