“Penny saved is a penny earned” is probably the most used saying. And why not! After all, everyone is earning to save some part as profit to further invest it or keep it for future needs. A business is no exception to such needs. In fact, the small businesses must be extra vigilant towards reducing their operational cost to cover their expenses reasonably and make some extra profit than expected.
The simple changes can make a great difference. Here are a few suggestions which may apply to the business of any domain.
Purchase of stationery makes a major part of office expense, especially the use of paper. Excessive use of paper affects the environmental balance along with the expense of unnecessary storage management. Unless extremely necessary, avoid the use of paper. Use smart devices for creating and storing documents like invoices, bills, business plan, contracts, etc. Businesses like retailing, wholesaling, transportation can also switch to smart devices for order itinerary, sale & purchase orders, dispatch orders, receivables, etc.
Go for Online Business Marketing
The whole world is online now, doing browsing, shopping, reviewing, selling, franchising, and what not. This clearly means all your businesses’ potential consumers are there too. Why not invest more time and money in online marketing, instead of traditional advertising in hoardings or newspapers? We are not saying these methods are not effective, but you cannot deny the popularity of the internet and its usage. So, make a smart marketing move and deploy efficient resources that could consistently market your business online via social media, blogs and PR (Press Release).
Work on retaining good clients
New client acquisition is undoubtedly an expensive process which would involve lots of departments and employees. Once successful, you should not overlook the methods to retain the good clients who are determined to bring back more business. Retaining will cut-down additional cost suffered while attaining the client and plus, this is a regular determinable source of income.
Switch to cloud solutions
The benefit of cloud technology in lowering your in-premises equipment and maintenance cost is enough to make you switch from traditional systems to cloud ones. The storage maintenance using Google drive, client management using online CRM system, keeping paychecks record using check stub maker, renting business servers, etc. can give you a value for money by saving thousands of amounts of money in a long-run.
Save on Energy Consumption
The motion sensor lights and appliance are just not for fancy offices; they are on a mission to save energy for the increasing demands of our planet and also save some heavy bucks for your business. Swap the old lights bulbs, air conditioners, toilet systems, with the more sophisticated ones like the motion sensor lights which go off when there is no one in the room or time-bound water taps or smart air conditioning.
Go for Operational lease on Equipment
An operational lease is a secret of success for many big brands, all over the world. It is a contract that allows a business to use required equipment & tools without owning them, for example, printer & fax machines, heavy-duty trucks in the construction, carrier vans in logistics.
Under-staffing is as harmful as over-staffing. But in the initial years of business, choose the candidates who are happy to perform multiple roles like HR can also work on preparing payroll for the company employs instead of setting up a whole new department of payroll. This will help your business moneywise, and at these times, best of the talents come into notice that could go a long way supporting your business.
Help us expand this list for reducing the operating cost of our small businesses. Mention your idea of savings in the comments below.