The key to any business is turning profit. No matter what progressions are made to the world, the fact will never change. If your company isn’t making money, then it’s failing.
There are a number of ways to boost your company’s profit but essentially it boils down to two strands. You either increase sales, or lower expenses. The former can be dictated by a number of factors, including size or client base and availability of products to name just two. However, improving the latter is very much in your own hands.
Most businesses think they are running a tight ship but the truth is the majority can make cuts to expenditure without sacrificing productivity. Squeezing every last drop out of your resources is vital, especially in business. With smart thinking, your company will be getting the most out of its supplies in next to no time. If you’re doing this then your chances of success will be greatly increased.
One of the most obvious places to start is staff. Cutting back on numbers might sound a little counterproductive, but there are ways to make smaller numbers work better for your business. Specifically, outsourcing certain aspects of the company can really save a fortune.
Hiring external help in the IT department, for example, could save a lot of money on computing hardware. Meanwhile, those professionals will ensure that your department is running smoothly, efficiently and securely. It might not always be the best solution, but in some scenarios it can really take out the headaches that can arise from an internal team. This not only leaves your staff to get on with what it does best, it also leads us nicely onto the next point.
Business premises are a huge expense, particular for small to mid-sized companies. If you don’t need it all, then why are you paying for it? After all, you wouldn’t hire unnecessary staff.
Decreasing office space can save a small fortune. If you have areas not being used then it’s definitely worth downsizing, or perhaps even getting another company to rent a portion of the premises from you. Likewise, if you are using big areas for long-term storage then it could be worth considering an external storage company. In fact, some of that old equipment can probably be sold or at least destroyed. Either way, there is no point in letting it continue to clog up your space.
Sticking with the idea of saving space, dragging the business into the 21st century by implementing a paperless filing system is a great way to keep the company both organised and secure. As an added bonus, a virtual network also allows staff to access documents without spending hours trying to locate it.
You will of course have the need for some physical storage and you should look to make the most out of this with wire mesh racks and other space saving facilities. Keeping the hard copies of paperwork to a minimal and organised fashion will certainly help though. Just think of the printing costs alone.
Speaking of printing, your marketing plan is almost definitely an area that can function with better results for less cost. Firstly, you should embrace the idea of using internet advertising. A relatively small investment into SEO will bring a huge increase in website traffic, allowing you to save big money through not having to use more conventional methods.
Likewise, a creative social media campaign can spread the word of your business to millions for minimal outlay.
The online arena is a great resource for marketing but you’ll still want to do some kind of real world advertising. Teaming up with another company can save on design and printing costs as most companies within those sectors will offer pleasing discounts for bulk orders. The relationship with the other organisation can also be mutually beneficial in plenty of other ways such as a trade of services.
Interaction is an important part of business and working out agreements can be hugely beneficial. However, the people you should really look to get the most from is your staff. You are paying them to produce the goods, so make sure they do.
That’s not to say you shouldn’t treat them well. It is of course a two-way relationship and making them feel happy and appreciated is best for the company. However, little changes can bring big rewards and you should have no qualms bringing these issues up. Getting them to clean up after themselves is no big deal, especially if your company is mostly paperless.
This can reduce the frequency of needing a cleaner and those saving will build up over a period of time.
Likewise, if you only require three members of the team to complete a group task then that’s the number you should delegate that work too. If you’ve allowed five people to carry out the task then you’re essentially paying two for nothing when they could be doing something more productive. Your staff are a huge resource, getting the most out of them is vital.
One way to get the most out of staff is by paying them less. If you can add an intern position or two to the company then you’ll be saving a fair chunk of money. Meanwhile the new member gets to boost their CV and gain some much needed experience in the field. Again these people aren’t there to be exploited and you should make it a mutually beneficial arrangement. Nevertheless, it is a great way of cutting your expenses. If they are really good it may even save you having to advertise a future full-time vacancy.
Essentially the key to saving money in business is the same as at home. Be smart. Take every decision seriously and make sure to shop around for the best deals on equipment, supplies, services and anything else. Even saving a few pounds on your web hosting supplier can make a difference.
Being resourceful is a key part of business. Do this right, and your company is destined for success.
