When it comes to running a business, especially a small business, every penny counts.
It is important to regularly evaluate the expenses of your business. Your business has essentials that it needs to function, but trimming the fat and streamlining expenses can greatly help your bottom line.
If you have hourly employees, it is important that their time is well-tracked. While overtime hours might be necessary at times, it can also be a costly expense. Help your employees make the best use of their time by teaching them time management skills and delegation of tasks.
As we move into a virtual world, are you utilizing all your office space? Many businesses have switched to a virtual or hybrid model to save money on building rent. If your business is still able to operate at its full capacity without needing a large physical space, downsizing could be a big cost-saver for you in the long run.
Many offices order supplies like paper, marketing collateral, or tech equipment without much price comparison. Try negotiating with vendors for a bulk discount or small business discount. Train your employees not to use materials in excess. While you may not be able to remove these costs entirely, you can try to ensure that they can last longer and are not wasted.
There are many times where retaining a full-time employee may be more cost-prohibitive than outsourcing these services. IT, HR, payroll/accounting, and facilities maintenance are all examples of services that can be outsourced. Make sure to obtain competitive pricing while also ensuring top-notch service. You will want to ensure the vendor you choose is reputable and not a fly-by-night operation.
It might sound trivial, but taking small measures to reduce your utility bill can pay off in a big way. Occupancy sensors and efficient LED lighting are two great ways to reduce wasted electricity. Many business owners are also installing tech where they can control the air and heat remotely using an app from their phone. Research shows keeping your thermostat on a schedule can lower your utility bill and also ensure comfort when occupants are in the space.