No matter how profitable your company is, as a business owner, you’re always looking to bring in more business and increase profits. However, another way to boost profits is by cutting expenses. Even if you’re having a good quarter full of brisk sales, out-of-control costs will quickly eat up your profits. Cutting unnecessary expenses and keeping costs under check works best when not done under duress.
Reduce travel expenses
While it’s not good for business to cut out travel expenses altogether (especially when traveling could mean landing a new client or selling a product) some means of travel can be reduced. For example, you can use video conferencing. The ability to be in several places at once without leaving your office is the next frontier and driving business productivity. Though face-to-face interactions with your customers, partners and colleagues will never be replaced, the huge leaps in quality, availability, and ease-of-use make videoconferencing the closest thing to being there. When you calculate the number of trips taken annually and determine the associated costs (plane tickets, parking fees, hotel costs, meals, rental car/taxi costs…) and multiply by the number of people traveling and the number of times per month, it is clear why videoconferencing is such an attractive alternative.
Invest in eco-friendly technology
You try to save energy at home, so why treat your office any differently? At the top of the list of ways to reduce your utility bills, is using energy-efficient appliances, such as CFL bulbs and Energy Star products. Turn off lights and computers once the workday ends, and make sure you’re using as little energy as possible. Light sensitive switches or switches with automatic timers can turn off lights during the day when it’s bright outside, avoiding wastage of electricity and saving the effort needed to manually turn each of these off. However, going green is not just for your personal life. Businesses can save millions of dollars annually from investing in eco-friendly technologies.
Regular office equipment maintenance
Every home office relies on them: printers, fax machines, copiers. We assume office equipment will be up and running, but when it doesn't, the results can be devastating. Taking advantage of a preventative maintenance contract can cost half as much as service purchased on an as-needed basis. Therefore it's crucial to obtain equipment from companies providing high quality machines and toners. Moreover, it's important having quality toners and whole equipment with recycling capabilities and energy-saving mode for all machines to reduce your expenses. All these user-friendly products allow customers to save energy easily and effectively by optimizing the working mode.
Use cloud computing
Cloud computing is a kind of Internet-based computing that provides shared processing resources and data to computers and other devices on demand. It has become a highly demanded service or utility due to the advantages of high computing power, cheap cost of services, high performance, scalability, accessibility as well as availability. For example if you use traditional server type you would need a server room that needs to be air-conditioned and secured, it’s hard to upgrade if you would need a bigger volume or storage disc. Using cloud service this problems disappear and you can take the time needed to make your business growth.
Ask for Employee Input
Make it a point to educate your employees about the effect of expenses on your business’s success – especially as it relates to their paychecks. Any cost-cutting efforts that you can manage can be reinvested into your store or office and its employees. Your employees will appreciate the fact you’re coming to them for answers and may help you to discover a savings opportunity you’ve overlooked.
Cutting expenses only means one thing: more profit for you and your business. By looking at these areas, you’ll be able to increase your profits – even in the current economic climate. Last but not the least; teach your employees the importance of saving. It is easier to save money then to make money.