There aren’t many sensations more gutting than coming to terms with the fact that the impetus in your revenues is consumed by the increase in your operational expenses. If that sounded somewhat technical, I might add here that I’m referring to the sick feeling of not being able to increase your profits with increasing sales, because of correspondingly increasing expenses. In this article, I squeeze out the juices of wisdom that I have been blessed with by the supreme power of Time! You can use these tips to save on some huge office expenses.
Hunt for furniture, stationary, and services in groups for great prices
There are so many agencies and wholesalers out there who only focus on corporate houses for their business. By shopping for necessary items such as office stationary etc in groups, you can increase the volume of the purchase and can hence deal for lesser costs. In several cities, there are groups of small businesses that shop together. Similar is also true for services that you might need to provide to your employees, for instance, security and transportation at night. Find businesses with similar requirements as yours and then bargain for wonderfully affordable prices because of the high volume of the purchases.
Expensive debts, repaid late – a killer combination that’s guaranteed to spoil your expense sheets
As a business owner, I know that most of small and medium sized businesses have to depend on debt capital to be able to finance investments and expansion measures. I also know these debts come at high rates of interest, and it is deceptively easy to miss out on paying the due installments. I suppose financing institutes rely pretty heavily on late payment fees, considering how often I did it! Anyways, my tip here would be to never be late for the installment, as the penalties associated with them are pretty substantial. I am certain that I would have saved a few hundred dollars every month had I realized how frequently my finance department was defaulting earlier!
Avoid desperate hiring, and use contractual employee services instead
I distinctly remember how the beginning of the financial year brought me 4 times my average monthly business from my foreign clients, and how I was desperately posting classifieds for more hiring for my business. I still see employees whom I hired at that time at for at least 20% premium salaries than I would ever do, just because I did not want to let the business go. There generally is a time when you feel the need of temporary increase in workforce, and I have made up my mind to always go for contractual employees in such circumstances. I have to thank an article I read in the HBR around those times for using such an idea with great results after that.
Paper, Printer Repairs, and Ink cartridges – the nefarious triplet of useless expenses!
Yes, it is indeed an apt adjective to be used for printer supplies. If you are managing a huge office space that accommodates many employees, you’d know by now that people tend to get crazy when they have access to free printing! The result – sports articles getting printed and hung on cubicle walls, personal printing done day in and day out, complete thousand pager books printed. More particularly, your monthly office supplies bills get multiplied ten times the amount what should have been. You translate that over one year, and are staring at an absolutely useless expense of huge proportions. Here are some tips that might help you save on these expenses-
· Place printers in areas where people get to know as to what is being printed, so that irresponsible print jobs get discouraged
· Always buy ink cartridges in bulk; this saves you a lot of money
· There are several ink cartridge discount stores online offering great prices on ink cartridges, along with some useful discount coupons
· Configure the printer for double side printing by default
· Keep the printer active; shoot a test print every week if there’s no printing going on otherwise
Energy saving appliances – you knew this was coming
Out of the strongest forces in this universe is the one that stops us from making some effort to help ourselves as well as the planet by using energy efficient appliances. The high upfront cost of these appliances is, without a doubt, the biggest contributor to this inertia. Honestly, I am not able to answer how exactly I managed to overcome it, but you can take my word for the great feeling that follows the action. Moreover, you soon begin to save expenses in terms of lighter electricity bills, and of course, there are government rebates fir the usage of such appliances as well.