Running a business is often an expensive venture, no matter the industry you choose. From lease costs to toilet paper, three are a range of unexpected expenses which you may not have seen coming, but which can add up to significant amounts and potentially damage profit. We have a list of some of the easiest ways to save your businesses valuable pennies, while still ensuring that your service or product remains at the top of its game.
Track General Overheads
Overhead costs are any expenses which are incurred as a result of running your business, such as lease or rent payments on your building, phones, internet, advertising and marketing, cleaning services, and more. These expenses are ongoing even if you are not producing your product or service—they run in the background. The best way to take control is to categorise these costs by function before seeing where you can make cuts. By separating the expenses into marketing, building, insurance, and so on, you can ask the heads of these departments to look deeper and see where savings could be made. This is much less overwhelming than being faced with the whole cost.
Maximise Staff Productivity
While most employees are generally motivated and willing to put the work in, there are always minutes in the day which are wasted, and you need to start seeing these as potential profit. One of the easiest ways to get the maximum productivity from your staff is to make sure you are only paying them for the work they do. This is most easily achieved through tracking their working hours using time punch clock software, which requires the employee to sign in and out as they start and finish work. This system can improve efficiency as you are not paying them for their first cup of coffee or post-work chat, but only for hours they spend being productive.
Consider Alternative Working
In a similar sense, it makes sense to be flexible when it comes to working conditions, and consider the possibility of flexible or remote operation if possible. Using a time monitoring software means you can see when your staff are working, and allowing them to work from home on certain occasions is positive for morale and goodwill, as well as eliminating the need to run heating and lighting for an office. Essential makes it a benefit for both sides and is likely to result in a more willing, engaged workforce.
Check Your Suppliers
Unfortunately, loyalty is not a viable currency, so it is vital to ensure you are always getting the best deal. From materials used to create your product to the coffee served in the staff room, make sure you aren’t paying too much for anything which comes into your business. These may seem like small savings, but they can have a significant impact over a more extended period.
