Running a business isn’t just about building a client portfolio and selling as many products and services as possible. That’s just one part of making it profitable. The other is monitoring and cutting costs so that they don’t eat into the profits and you can keep your business sustainable.
Here are six tips to running your business successfully and keeping those costs down.
Buy second-hand equipment
You might not feel like skimping on technology– after all, you want the best technology, to assure the most efficiency and profitability possible– but you can save in other areas of the business, such as office furniture. If you’re investing in desks, think about buying larger desks so that your employees can share a desk. Make sure they have ample space, though. You don’t want to be saving money but increasing the frustration of your employees.
Review your operating expenses and overheads
Go over your expense accounts and see where you could be cutting costs in the day to day to operation of your business. Analyse your internet usage and see if you can get a cheaper business broadband service. Take a look at energy bills. Could you be getting a better deal? Take a look at smaller expenses, such as office supplies. Are you getting the best discount for them? Ask for a better one, or at least consider changing your supplier.
As well as saving the Planet, going green has its financial rewards in the form of savings. Go paperless wherever possible. Ask your employees to switch off their computers when they leave work for the day instead of placing on the ‘Sleep’ mode, so that you can save some energy and lower your utilities bills. Use electronic file storage, such as Google Docs or Dropbox. Opt for energy saving appliances. Install some energy saving light bulbs.
Hire skilled but inexperienced people
Keep an eye out for people that are adequately skilled to complete the tasks but require the overall experience to work in the industry. Sometimes it makes more sense to recruit someone with more experience, but there are lots of talented youngsters out there, fresh out of university, who are highly competent and are looking for entry level positions. Be the one to give them that big break. What they lack in experience they’ll make up for in enthusiasm. You can still pay them a respectable salary while saving money.
Hang on to your best employees
High-performing employees are a valuable asset to the company. These people make a solid contribution to the company with their skills and they keep the morale of other employees in the company up. It costs time and money to hire a replacement and then train them, as does a high turnover in general, so hold meetings with your team from time to time. Find out any frustrations or concerns and address them before you star employees make for the door.
These tips will help you cut a sizeable chunk out of your costs. It’s time to be profitable. So, make it happen!