Money Saving Tips for Your Business
All business owners need to keep their eyes on the expenditure. Although sales and marketing is often the focus of the day to day running of a commercial venture, controlling business cost is just as important. All too often, businesses can be wasteful with their spending, either purchasing too much of something or not getting the best value for money. In order to minimise your business costs, follow the tips below. Each of them will improve your balance sheet no end and provide you with an improved gross profit in years to come.
Research Your Energy Costs
Often thought of as a fixed cost, energy consumption can vary greatly from business to business and there is no reason to think that the amount you use means you cannot find a better deal. Many businesses need power to run equipment, but even if it only comes down to nothing more than heating and lighting costs, electricity bills and gas charges are frequently a high proportion of a company's ongoing quarterly costs. Look into low energy measures, such as thermal insulation, or using energy at times when it is cheaper. Price comparisons, based on current usage, can be highly beneficial too, when looking for a cheaper supplier.
Increase Your Business Space
Expanding the size of your business premises can mean that you are able to simplify workflows and clear clutter, leading to fewer mistakes. This can lower costs because things don't have to be repeated or orders re-despatched. However, renting more space is costly. Instead, fit a mezzanine floor. This means you can effectively double the amount of space that you have available without needing to increase your rental or heating costs. Different companies provide mezzanine flooring service such as Warehouse Storage Solutions offers its customers Mezzanine flooring service, By installing one, you can add more workspace, find room for a better organised warehouse or even use it for office-based staff, if wanted.
Use a Franking Machine
When you have lots of post that needs to go out, heading to the Post Office to weigh and despatch parcels is time-consuming and costly. Even if you use stamps for standard size envelopes, the price per item that is posted is greater than if you use a franking machine. By leasing one, you are able to spread the costs without having to find capital outlay. On average, users of franking machine save a penny for every item that they send, so they can soon lead to sizeable costs savings for companies that post goods or use the postal service to send invoices and statements to their customers.
If you have a small amount of staff, then your payroll function may take up a disproportionate amount of your time. By employing a payroll clerk who runs your payroll function each month, you may not be getting the best value for money. Firms with fewer than a dozen or so employees can often save money by using a specialist sub-contractor who works exclusively in the field of payroll. Not only will you save money over the course of a year, but costly mistakes are often avoided by engaging the services of an expert.
Switch to Electronic Services
By sending out paper invoices instead of electronic ones by email, you are potentially wasting thousands of pounds each year. Why not consider the virtues of dealing with customers electronically? Many businesses are now set up to handle customer enquiries via their website, thus reducing the amount of time spent dealing with commonly asked questions. A properly organised company website - and other electronic services, such as corporate mobile phone apps - should be able to reduce the amount you spend on staffing customer service lines and dealing with the same sorts of enquiries time and again.