Business isn’t cheap. You don’t need a genius to tell you that. What you might need, however, is a closer eye on the different costs in the business. The right kind of discerning look that can help you see how to make sure you’re not paying too much and maybe even spot the potential for investment.
So here we’ll be looking at some of the biggest costs in business and how you turn them to your advantage.
The premises
Most likely to be the biggest cost for any business is the property involved in housing it all. There are ways to get a better deal that involves more than just cutting down on your utility bills. For example, if you’re renovating or building premises, you should make sure that you’re getting a closer look at all the costs. Only rely on construction companies that can provide accurate estimates. Multi-residential, retail, and industrial tender pricing can help you see exactly where your money is going. And how to change those costs. A tender provides you with the opportunity to compare and contrast the cost of all your different needs, not just the lump sum.
The people
Anyone who employs people will tell you that they don’t come cheap at all. When you start talking about cutting the costs of labour, it’s easy to think about getting rid of people altogether. However, that’s not always the best option. For one, it damages morale. Secondly, if you find you need that role filled, then the costs of hiring and training will be much higher than retaining. You should, however, look at your rates of raises compared to industry standards. If you find you’re paying more than the average, then consider delaying or reducing raises until you even out. You can also cut costs in some of the important aspects of giving them the ability to do their job. Instead of hiring someone to train them from outside the business, consider cross-training. You might also consider giving them the flexibility to do work remotely from outside the office.
The supply
Most businesses rely on services and materials from other businesses. In these costs, it’s perhaps easiest to find the way to scale back. For one, consider looking at competition and get quotes for materials or services you’re already getting. If you’ve been with suppliers and providers for some time, you should also use that position to see if you can negotiate them to a better deal. Business 2 business providers value customer loyalty and will be more willing than most to budge on price. Especially if you’re able to show evidence of competitors who can offer you that better deal. Looking at your production line can also ensure you’re getting the most efficient use out of those supplies, too.
Cutting costs is a reality of business that will hit whenever you need to free up some resources or get through a rough patch. With the right planning, you can do it without sacrificing morale or the efficiency of the current operation. Just remember to always take a closer look at your options where money is involved. Getting a better deal is always an option.
Easy Ways To Slash Your Business Stationery Spending
Today, being green is a must for all businesses, there’s no doubt about that. More businesses than ever before have gone green, which is an incredible step, and one that has had a hugely positive impact on the environment. However, just because more and more businesses are choosing to go green, that doesn’t mean that business owners don’t still need to think about the cost of stationery.
The fact is that businesses will always need to use a small amount of stationery, regardless of whether they are eco-friendly or not. So regardless of whether you have decided to become a greener business, don’t make the mistake of thinking that stationery won’t still be a cost that you need to think about.
Talking about cost, stationery does not come cheap, or at least, it doesn’t always come cheap. However, keeping the stationery that your business needs to run affordable, can sometimes be a struggle. That being said, there are plenty of ways that you can slash your stationery spending, it’s just a case of being willing to make some changes.
Reduce your paper usage
One of the best ways to slash your stationery spending is simple: reduce your paper usage. You may have already done this – each year more and more businesses aim to go paperless, or as paperless as possible. However, if your business is yet to take the leap, now is the time to do so. Sure, it will mean a few changes to how your team works, but it will slash your stationery spending while helping the environment. To reduce your paper usage consider storing records electronically, such as accounts, for instance. You could also communicate via email or instant messenger, instead of via letters and memos. Making small changes is all it takes.
Use recycled paper where possible
Often, recycled paper ends up being cheaper than new paper, plus it means that you aren’t damaging the environment in any way. So it could be worth opting to use recycled paper wherever possible, to help cut costs and save the environment. Plus, the chances are that by using recycled paper and telling your customers about it, you will increase your appeal as a brand. This is because the majority of consumers are keen to support companies that take care of the environment.
Be savvy about your suppliers
To help reduce your stationery spending, it pays to be savvy about your suppliers. The fact is that if you are savvy about the suppliers that you use, you can reduce your stationery spending significantly, it’s just a case of shopping around to get the best price on the items that you need. Say, for instance, you need printer cartridges, budget-friendly companies are able to help ensure that you stick to your budget and don’t overspend. The best thing that you can do to reduce your spending is to shop around until you find the best deal.
Double-sided print
A great way to reduce the amount of paper and card that is being used for your stationary, thus helping you to cut costs, is to print on both sides. Whether you are sending a letter to a customer or are designing your business cards, don’t be afraid to print on both sides. This will not only reduce your spending on stationery, but it will also help to make your business more eco-friendly.
Want to slash your business stationery costs? Then take note of the advice above and implement it, and you can make some incredible savings.
Why Your Business Is Losing Out On Money
When we create a business, we hope to make as much money as possible. After all, we want to be hugely successful, and ensure we are the next Richard Branson. But for a lot of businesses, they struggle to make a decent buck. And they don’t really know why their profits are so limited.
Therefore, here are some common reasons why your business is losing out on money!
Employee turnover
It’s so important that you make sure you take on employees who are going to stick with your company for years to come. But unfortunately, a lot of small businesses find they have a large employee turnover. After all, they might get an employee who works for them for a few months before moving on to bigger and brighter things. But with a high turnover of employees, it’s going to sink into your takings. After all, you will have to keep spending money out on training for fresh faces. And it can mean you lose out on money. Therefore, you need to try and retain your employees for the sake of your finances. Offer them good career progression and a good place to work to ensure they stick around. And make sure you ask them about any changes they feel would benefit their work. Showing them you value their opinion will go a long way.
Waste of materials and supplies
You might be surprised how much a company wastes on materials and supplies. After all, they tend to buy more than they need, just to ensure they don’t run out while completing a job. But then the excessive amount can end up causing a stir on your finances. After all, you might end up not making as much for the job if you have a tonne of materials left over. And it can cost you more having to find space to hold the unused materials. Therefore, make sure you only buy the necessary amount of materials and supplies to ensure waste doesn’t dent your business finances. And make sure you get on top of things like material resource management. That way, materials can be removed effectively without causing your business to lose out on money!
Bad accounting
Another top reason why businesses lose out on money is down to poor accounting. After all, a lot of entrepreneurs have not had to deal with large accounts before. Therefore, they tend to make errors which cause them to lose out on money. Some common errors include not logging down transactions correctly. Therefore, you might end up thinking you have more in the business accounts than there really is. And then you could spend more than you have available to you. Also, a lot of entrepreneurs don’t get on top of invoicing. So they might forget to send a client an invoice. And it will mean they have done the work for free! So try and get on top of your business finances, so your company doesn’t miss out. And if you are struggling, hire an accountant to work for you. That way, no mistakes will be made when it comes to your finances. And get on top of advertising. After all, potential clients need to know you are out there to draw in business, and ultimately money, to your company!
How to Improve Your Business’s Value on a Budget
Saving money in small business can feel like the impossible at times and being frugal can seem like the impossible when there is always so many expenses to contend with. However, there are a variety of ways you can improve the prospects of your business, and add to its financial value. Whether it be through renovations to improve the aesthetics of your business to future customers, or working on advertising campaigns to help grow your business client base, there are quite a few things that can be done to improve your business.
Renovations can often feel like an extreme measure when it comes to your business, and unless you are rebranding or growing your business, it can seem like a waste of time to close the doors or limit your business hours while construction takes place. There are a variety of options to overcome this unwarranted stress whilst not breaking your budget. While some businesses can afford to add extra floor space others try and cut the hefty costs that come along with this option and minimise the clutter in their current space. Minimising clutter is a wonderful way of refreshing an area that feels drab and dreary, and can help with employee’s motivation, and productivity. If looking to sell a business, decluttering can also increase the vlaue of your business to potential buyers.
Once the unneeded clutter has been removed, there are options for presenting your new space without months of renovations taking place around you. Refurbishing your current flooring is always a great way of making an older space feel new again. With so many options available from epoxy flooring for concrete floor areas, to laminated floor boards, regardless of your business type you are sure to find the perfect flooring for your needs. Contrary to popular belief, adding new flooring to your space doesn’t take long, with some options only taking a day to install. This means you can avoid unnecessary closure during business hours. Another option to sprucing up a dreary area is to add a touch of paint to the walls. This is another job that can be done over a couple of days, possibly on the weekend if your business doesn’t operate then. It will give your workspace a new lease on life, whilst adding a touch of the personal to your area.
Although we have only mentioned renovations so far, there are many things that can help improve your business without having to get your hands dirty. Many businesses opt to outsource their advertising and marketing needs, when in actual fact this can often be done easily by someone within the business. Social media advertising can often go a long way, and if you have someone within the business who is quite tech savvy, you may want to consider creating a role around their skills. This role could include duties such as running social media platforms, email advertisements, and the creation of weekly or monthly newsletters sent out to clients to keep them informed on what is happening within your company.
This article has barely touched the surface, and there are plenty of other ways to improve your business without breaking the bank. Have a look at some of the other ideas suggested here.
Straightening Out The Financial Knots In Your Business
It might not be your chief concern, but there’s no denying just how important money is to a business. If you try and take a lackadaisical approach to how you organize it, it’s going to bite you in the backside before you know it. Businesses that fail to take care of the financial knots in their business soon find themselves in a tangle and have to work extra hard to get out of it.
Here’s how you stay on top of your finances and simplify them so a complicated matter isn’t made into even more of a puzzle.
Treat efficiency as priority number one
Creeping costs are always the biggest concern with a business that tends to lose track of its finances. Before you know it, they creep to the point they’re burning a hole in your pocket. Tracking your costs more carefully, identifying them accurately, and strategizing how to cut them is essential. For instance, you need to know what costs you’re accruing because of expenses on business trips and what costs are down to poor fleet management. Return on investment should similarly be the topic of the day when it comes to any improvements you want to make to the business, such as paying for online advertising or outsourcing your IT systems management. Specificity is the key.
Get all the cash you’re supposed to have
You’re burning through cash every day, but in many businesses, you don’t always have immediate access to the money you’re making. This is particularly true of any businesses that deal with invoices. Cash flow finance can help you ensure that you have the money you’re supposed to have by getting a third party to help you fill in the gaps. However, you can save yourself a lot of money by being more thorough with your invoices. Set aside a money day each week to call up any late payers and politely remind them of what they owe. Making set payment dates a part of the contract and the invoice can also spur people to give you the cash that’s rightfully yours a lot sooner, too.
Don’t let it come to the crunch
If you’re not organizing your finances on a regular basis, then you’re going to have those hellish periods of crunch time. This is when all other work has to be set aside just so you get your quarterly reports and your taxes done. Instead, it’s much smarter to keep your records tidy and ready to reference as you go along. Setting up a financial calendar each year to go with it helps you split the task into smaller pieces so that you’re given the deadline to take the initiative but you’re not forced to do it all at once. It’s a big year so even the biggest organization tasks can be split into much more manageable tasks.
Always be trimming the fat. Always be looking to close on cash you’re owed. Always stay on top of the essential record keeping and organization. That’s how you stop your finances from tripping up the business.