Businesses have always made money in two ways: by increasing their sales and revenue, or by reducing its expenses. In order to drive up its sales, a company must put in a lot of time and planning. On the other hand, cutting expenses is something that you can accomplish quickly and easily.
Out-of-control expenses can have a huge impact on a company’s bottom line. However, you do not have to sell off your business assets or give up important services in order to run a profitable and efficient ship. Here are five simple techniques that you can start implementing today to save your business money.
1. Use Office Space Efficiently
If you currently have any unused office space, the best option would be subleasing it. Alternatively, you could also turn it into an affordable co-working space. This approach is a great way of shaving off some money from your lease expense. Furthermore, working with another company in the same space can also spark your team’s creativity and lead to new business or partnership opportunities.
2. Consider Relocation
Thanks to the internet, not every company needs to be located in a high-traffic area to be successful. This means that you can easily relocate your business location in order to save on your monthly rent.
In many places, this may mean moving further away from the city center. That is because commercial rents usually decrease as you move away from the city. However, this will only apply to businesses that do not serve a local customer base or rely on walk-in customers.
3. Get Multiple Bids
When looking for a new manufacturer, vendor, or supplier, it is good practice to seek out multiple bids. While this might take longer time, it can result in long-term savings that could have massive impacts on your company’s profits.
This is especially important for startups or established companies that usually place large orders. Even shaving a couple of cents off each unit price could lead to huge savings in the end. You might have to put in a bit more time and effort into the process, but it will reduce your expenses drastically.
4. Power Up Efficiently
The number one expense for many businesses is the power bill. To combat this, make sure that you and your employees power down everything that is not needed. You can also make better lighting choices by switching to compact fluorescent bulbs. These can save you a lot of money by cutting down daily electricity consumption by a third. They also last three times longer than traditional light bulbs.
5. Go Digital
Consider getting rid of hard copies by transforming your business to a paperless, cloud-based enterprise. Not only will this save you a lot of money that you would otherwise spend on stationery, it will also help you backup important data faster and more securely than ever before.
Furthermore, most customers prefer to communicate through digital means. This includes channels like live chat, web forms, social media, and emails. Innovative services like http://faxzee.com/tutorials/send-fax-gmail-5-steps/ now allow you to send faxes from your Gmail address in five simple steps. As a result, you can cut down on equipment costs and even work from anywhere in the world.