Trying to cut the cost of running your business? Check out our helpful tips!
Letting ongoing costs get out of control won’t just cut into your profits. It also makes your business more vulnerable to economic downturns, as the more bills you need to pay, the more income you need to keep the doors open.
The good news is that most businesses have a few areas where they could be spending less. If you’d like to start cutting back on those ongoing costs, reducing your debts, and having a larger profit margin, here are a few methods you can try.
Invest in Green Solutions
Many of the technologies and ideas that make an office more environmentally friendly can also help reduce ongoing utility costs. Energy-efficient lamps and appliances can be used to lower your electric bill, while water-efficient faucets and toilets do the same for your water bill.
Depending on where your building is located, solar and wind power can also be used to reduce ongoing costs. Solar-powered outdoor lighting solutions are easy to install and can lead to hundreds of dollars in savings every year. This would definitely reduce the cost of running your business by drastically lowering your monthly bills.
Trim Payroll Costs
It’s a good idea to go over your ongoing payroll expenses every so often to see areas where you could be spending less. You may be paying overtime for work that could be done during business hours, for example. Or there may be employees whose position in the company has been made redundant by recent changes.
When tackling payroll and wage changes, it’s a good idea to consult with an employment lawyer first. As this website run by a Los Angeles law firm shows, there are plenty of legal issues that can arise from wage-hour violations.
Reduce Energy Costs
Lowering electric bills doesn’t need to involve replacing fixtures and appliances. You can also reduce your bill by tackling phantom power usage; that’s the power used by some appliances even when they are not turned on.
You can cut back on that power consumption by unplugging anything that is not currently in use. And by shutting off all the appliances in the office overnight. This is a job that can be made easier through the use of power strips and smart power plugs.
Keep Close Track of Ongoing Expenses
There are plenty of services and software solutions out there that base their business model on monthly subscriptions. And when you’re busy running an entire business, it’s easy to lose track of which of those ongoing payments are useful and which you could have canceled months ago.
Having all these recurring payments in a single spreadsheet you can review regularly can help make sure nothing is forgotten. So whether you get inspired by quotes, organization videos, or impactful podcasts, it’s time to get excited about organizing your ongoing expenses!
Try New Marketing Solutions
Marketing is a necessary ongoing cost for most businesses, but there are ways to reduce how much marketing costs your business. One method is to try strategies with a higher potential return on investment.
For example, content marketing is typically cheaper in the long run when compared to paid ads. And using email marketing to encourage existing clients to buy more is cheaper than going after new clients.