There are costs involved with running any business and although there is nothing you can do to avoid this, there are some simple yet effective changes you can make to reduce your expenses and improve profitability.
Reduce energy use
Use energy saving light bulbs, make sure the windows are insulted properly, encourage people to email documents rather than print them off wherever possible, ask staff to turn their computers off at night and use more economical company cars. There are plenty of things you can do to make your office more environmentally friendly and save yourself a few pennies while you’re at it.
Believe it or not, studies have showed that employees who work from home are actually more productive than those who work in the office. It may not be possible to let people do this all the time but if you’re looking to cut back on costs, providing flexible working could be a great help.
If there are less people in the office you can have a smaller premises, your energy bills will automatically go down, there are less travel expenses to pay and there are many employees who would take this perk over a pay rise.
Pay your invoices early
Have a look through your invoices because many companies offer a reduction in payment if you pay them early. It may only seem like a small amount initially but if you add up the annual saving of doing this for all your debtors, you will be surprised how much money you can save.
Buy second-hand equipment
It’s amazing how quickly office equipment needs replacing and how much it can end up costing. Rather than taking a big hit every time you need chairs, desks, printers or anything else you need for the office, consider getting it second-hand. There are always other businesses liquidating or unloading their assets so you can pick up really great quality items at a fraction of their retail cost.
Trade goods and services
A great tactic that many businesses use is to trade off goods and services to reduce cash expenditures. For example, if you run a paper company and one of your clients is a travel agent, you could offer a discount on printing off brochures in exchange for a discount on business travel.
Manage your inventory
So many business have stock rooms full of products they can’t shift yet they carry on ordering more. Have a proper inventory of all your stock and put a hold on ordering anything you are in excess of and are unlikely to run out of anytime soon. You may even have products that you no longer sell and can get some money from by selling it onto someone else.
If you would like more information about how you can reduce your business costs, please feel free to contact Windsor Accountancy and we will be more than happy to help.