In order to strengthen your business, you need to make it more solvent and more financially potent. That being said, cutting costs is one of the most important skills that a startup needs to possess. First of all, it allows you to boost your cash flow. Second, it brings you closer to your break-even point by maximizing your profit. Finally, it helps you redirect your funds in order to achieve more with fewer resources. Sometimes, a business that starts heading south might need to find a way to downsize in order to remain afloat and triumph later on. All in all, here are several tips on downsizing your business expenses to get back in the game stronger.
The first issue on this list that we need to address is one of the utilities. Namely, the power that your office consumes is not to be trifled with, seeing as how it possesses a far greater number of appliances than a traditional household. The first thing you want to address is the issue of a thermostat. A single degree can make a 10 percent difference in cost of running your thermostat, which is something that a programmable smart thermostat can handle for you with ease. To make things even simpler, the ideal office temperature is 22 Celsius (71.6 degrees Fahrenheit) which is why getting a smart thermostat also brings a productivity boost.
Another thing you need to know is that an average LED bulb spends about 4 to 6 times less power in order to produce the same amount of light as the incandescent one. Therefore, switching to LED is a frugal choice but also a pragmatic one. Namely, an average LED bulb lasts 50 times longer than its incandescent counterpart (50,000 work hours as opposed to only 1,000 hours). Furthermore, merely replacing bulbs is just the tip of the iceberg of all possibilities you have available. Instead, you can explore other LED products and find a way in which you can create a compact illumination system that can pay itself off.
The next money-saving piece of advice is the fact that you should reduce the use of paper in your office. An average office worker tends to print somewhere about 10,000 sheets every single year, which is both economic and ecological disaster. Therefore, you need to figure out how to reduce the use of paper within the office. Luckily, in the digital era, this is really not that hard. Sure, contracts should still be on paper but regular documents can be just as effective in the digital form. With the current backup systems and software, this form of data keeping is even more reliable.
Nowadays, a lot of people commute at least as a part-time, while some companies hire telecommuters exclusively. The cost reduction that comes from this business policy is quite great and touches many different levels. For instance, you get the reduction in the cost of utilities, seeing as how you need fewer electrical appliances on-spot. You can also reduce the size of the office, therefore, lowering the amount of rent you have to pay every year. Finally, you get to cut commuting cost for employees. All in all, a solid plan but not always an applicable one.
When outfitting your office, you need to keep in mind that buying new isn’t always the best choice. Sure, office technology (laptops) should be high-end if you can afford it, however, there’s no reason for you to do the same with printers and copiers around the office. Next, when it comes to corporate vehicles, you can make a massive saving by using used cars instead of purchasing new ones. At last, you can get some outstandingly well-maintained, used furniture pieces to fit within your office. Either way, you stand to save yourself quite a bit of money.
One of the greatest mistakes that small entrepreneurs make is taking the costs of supplies, utility or operational expenses for granted. You would be surprised just how many of these issues can be negotiated for. Namely, in some areas, there are alternative providers to most of the functions you are in need of. You can always switch your internet provider if you find a better offer elsewhere and, sometimes, your current provider will offer you with an even more impressive counter-offer in order to make your stay.
Finally, while influencers usually work for some sort of compensation, customer promoters and brand ambassadors are for free. A satisfied customer is likely to recommend you to a friend or an acquaintance, thus raising your brand awareness free of charge. To some, this may not sound as reliable but, you need to understand that it’s a self-sustaining system, once you actually manage to establish it. As such, the costs are low and the reward is fairly high.
At the end of the day, it’s vital that you understand that being frugal pushes your business forward while being cheap sets it back. With that in mind, we come to the natural conclusion that the key to success in the business world lies in your ability to walk the thin line between cost-efficient and stingy. A successful business burns cash to stay competitive and the most successful business does this with the greatest efficiency rate. That being said, learning how to downsize your business expenses without hurting your productivity is the simplest way to get back in the game stronger than ever.