22 Jun 5 Effective Money Saving Tips For Small and Medium Sized Businesses
Every small business owner looks for ways to reduce costs in their company. Taking a detailed look at the costs can spotlight a number of areas where small companies can save significant amounts of money annually with very little effort:
How to save money in your small sized business
#1 Staffing costs
The first quarter of the year is typically dominated by various staffing decisions; this is the time when companies either start looking for new talent, or employees find new positions. While you may be inclined to fill up the positions soon after an employee leaves the organization, you should desist from doing so. This may seem counterintuitive; but when you delay replacing an employee who has left the company, you can still delegate that person’s tasks to a few other capable members of your team and save some money while you look for a suitable candidate.
#2 Power costs
Most employees are aware that they should be more conscious of their employer’s bills, but very few act upon it. The general contention is that they since they don’t receive any recognition for their efforts, they couldn’t care less about adopting methods that will help save energy in their organisation. As the business owner, you have to make an effort to inculcate energy-consciousness at work.
Make sure that your employees regularly shut down their computers when they leave for home each day. Get overnight lighting systems installed in different parts of the office, so these can be switched on independently when required.
Use the same concept for heating and air conditioning. Install zoning systems where possible. This allows you to have air conditioning only in the areas where employees are working; this is especially useful on weekends when you may have very few staff members working at the office.
Replace all standard bulbs and light fittings with LED bulbs. While the upfront costs of the latter are higher than the former, they provide value in the long term and can significantly reduce your power costs.
#3 Reduce buying
This is one of the simplest tips to reduce your outgoings in the short-term. There are always some office supplies that come in at regular intervals, such as stationery etc. You can easily cut these costs by reducing wastage, encouraging staff to use these products and items wisely and suspend buying these products for short spans of time, randomly right through the year. This doesn’t impact the working of your office in any way as there is almost always a build-up of stationery stock on shelves, in drawers etc.
#4 Outsource bad payers
Bad debts are a major problem point for companies of any size. Not only does your staff have to waste time chasing unpaid bills, but it can also cause your business to incur hefty interest charges for using overdraft facilities and this may impact your credit rating as well. Regardless of how well you screen new clients, bad debts can pose a problem from time-to-time. This is why it’s best to hire experts to chase these bad debt cases.
Consult cost saving specialists
It’s important to be consistent with your cost saving efforts and tweak the techniques from time to time, based on the conditions within the company. It’s also a good idea to consult expert professionals that can provide cost saving guidance.
For effective and sustainable cost reductions & efficiencies that will increase your bottom line, contact the experts at Benchmark Cost Solutions at this number – 1300 170 585. If you prefer, you can also request a call back or write to us at this email address.
Thanks for reading,
Benchmark Cost Solutions Team
1300 170 585