All businesses have overheads; those recurring costs that show up month on month. They may have little effect on the day to day running, but can have a huge impact on your bottom line. Careful monitoring will prevent overheads getting out of control and what better time than New Year, to re-evaluate the necessity of these costs and re-establish your values.
There are only two ways to get more money; sell more or cut back. Nobody likes the idea of a cut back, but sometimes in business it has to be done. Simply looking at alternatives to what you already have can help open your eyes to other sources of saving. Your office and your everyday tasks can be replaced to a more cost effective substitute like swapping travel with video calls.
Here are some tips that should help lessen the blow:
1. Evaluate your office – Look not only at the physical space with all its associated costs, but at the furniture and equipment within the space.
Either move to a less expensive office or look for shared or serviced offices to cut back on overheads. Even just trying to re-negotiate the cost of your current space could save you money (and the expense of moving).
Unused office furniture could be sold and equipment recycled – some stores may even give you money off new when you trade in your old hardware.
2. Update old Software – this is viewed as expensive; however, hiring the right person for the job will pay dividends. There is a plethora of open source software available that provide options you did not have or are currently paying for. Research here is essential to ensure you retain professionalism.
3. Stop traveling – meet up via high definition video calls instead. Not only is the software easy to use and allows for much more than just a phone call with pictures; it makes the collaboration of colleagues, clients and customers all over the world available at the drop of a hat.
This method of communication also opens the doors to be able to deal with more businesses that were previously not possible without travel. The use of desktop sharing and interactive whiteboards make it easy for those in different locations to have a productive meeting meaning the world suddenly becomes a lot smaller for your business.
4. Compare services – just like all the television adverts for your home, investigate fixed price deals or utilities, water coolers, printers and recycling. Providers do not want to lose your business, so it is within their interest to make sure you are getting the best deal – make sure you are on it.
It is easy to go on about how to save money, but there are also things you cannot afford to cut. Maintaining your loyalty both from employees and customers is essential if there is going to be a business at the end of the day. Employees will understand cutbacks – but not at their expense; avoid reducing pension contributions or festive bonus schemes – they may help you out in the short term, but not in the long.
New Year is a great time to look back at your achievements and set your goals for the year ahead. Making the most of what you have and looking for new ways to be innovative will not only make your business more frugal, but will open doors to new opportunities.
Tags: Business, Cash Flow, financial planning, Money Saving, Official Matter
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