Looking to cut costs? As a small business owner, you’ll know that margins are tight, small victories count and details matter. It seems that saving money means living with yours; the more efficient and self sufficient the business, the greater the outcomes. It’s not rocket science. But how do you turn this words and tropes into cold, hard profit? Well, you could start by reading these 4 IDEAL ways to save money as a small business owner.
CONSIDER WORKING FROM HOME OR A SHARED OFFICE SPACE
The demands of renting an office space could prove to be the difference between significantly increased outgoings and a stagnating business proposition. Indeed, it’s not just the rent you have to worry about; there’s heating, lighting and insurance bills to consider, not to mention the business rates and price of wifi. Also, in case you hadn’t made the connection between the commute to work and people’s bleeding bank balance, consider that the average person spends £148 each month getting to and from work – according to the Metro that’s a whopping £135,871 spent on travel by retirement time. And remember, time is money too – the average worker spends 400 days of their lives commuting. That’s time that could be spent on better, more meaningful pursuits.
So, if you and your employees can work from home, this could likely reduce your outgoings. Considerably. What’s more, according to the New York Post, remote employees tend to be more productive than office dwellers.
If you really do need an office space then consider renting a serviced office or a casual co-working space. Both of these shared spaces will provide the infrastructure to run your business, but without the commitment. You usually pay a monthly rate that includes internet and other bills, so it’s easy to manage; granting your more time for flashes of business based inspiration.
CONSIDER CLOUD COMPUTING
Fancy working at home? No problem. Need to access your files when abroad? Easy. The increased flexibility of cloud computing is one of the major advantages of using it. You can access your data from any device, any place, any time. Many small businesses are taking advantage of this and employing remote workers with flexible working arrangements. This can save your business money on office space, and tech, as you can implement a BYOD (bring your own device) approach saving money on technology.
We all know that failing to save a file, and then accidentally deleting it, can mean big losses for small business; in time, productivity, efficiency and more. However, cloud backup solutions means restoration is easy. With just a few clicks of the mouse, backed up files can be easily found and restored.
INVEST IN ENERGY SAVING SOLUTIONS
Many companies are missing out when it comes to energy savings, and it’s costing them heaps of money in the process. Lighting costs take up around 30% of an energy bill, so cutting this figure down can save your company cash.
First off, look into replacing your current incandescent lighting with a fluorescent type. Make sure that, wherever possible, you turn all equipment off overnight – just one computer left on for 24 hours a day can cost a business £50 a year, so just imagine the price for hundreds. If your staff are going out for lunch, ask them to put their computers into sleep mode, and make it policy for all computers to sleep after 10 minutes of inactivity where possible. Simple steps, but ones which can have a big impact.
BE CAREFUL HOW YOU SHIP YOUR GOODS
Does your business ship goods as part of your service? When distributing large goods between warehouses and directly to customers, one of the biggest challenges facing businesses is the need to strike a balance between the cost and the speed of delivery. This not only requires expert assistance, but also a clear focus on efficiency and how you intend to ship items. In terms of the former, service providers such as National Pallets can be worth their weight in gold, as they provide variable shipping options while also helping you to manage your goods from the point of collection to their final destination.
It’s also important to ship your goods in bulk where possible, as you look to optimise the cost-effectiveness and efficiency of every single load and shipment. While the sheer size of larger goods may restrict you in this respect, this only makes it more important that you pack and ship them as efficiently as possible.