Running a business can be expensive and there always seems to be a new unexpected cost or expenses that eats into your profits when you least expect it. Saving on operating costs is the most effective way to protect your bottom line and future-proof your business and you don’t have to sacrifice profits to achieve a saving. There are lots of different ways to be smart and save money but we’ve put together our top five tips for your business:
Review your workforce
Undertake a review of your workforce to make sure that your staffing strategy is still meeting the needs of your business. While full-time employees are the standard way to go in most businesses, consider part-time, casual or even out-sourced roles. A flexible workforce keeps your options open and using casual or freelance staff can reduce the overheads such as leave pay and office space.
Promote from within
You already have a team of loyal, qualified staff who know your business so hiring candidates from outside your business is not always the best solution? You may save time and money on training and handover by promoting from within and retaining staff who are already passionate about your business. You can offer incentives and rewards to encourage employees to achieve targets and the benefits will flow on to all areas of your business.
How much space do you really need?
Whether you operate an office, retail store or warehouse, review your floor plan and make sure you’re not wasting space. If you have room to spare, then consider sub-letting the space to earn income until you’re ready to expand. If your staff spend most of their time out of the office, then consider a hot-desk area where staff can work effectively. It will save you the cost of setting up a designated office for each staff member, especially if only a small number of personnel are in the office at any given time.
Negotiate with suppliers
When dealing with suppliers, ask if you can negotiate a lower price in return for regular and consistent business. Do your homework and shop around to make sure you’re getting the best deal and don’t be afraid to buy in bulk. If you have the space to store excess inventory and project demand for the product, then you can make big savings.
Review your overheads
Take a detailed look at each and every overhead to determine if there are savings to be made. Review your costings and make some time to undertake research and planning activities. Any money you save can be invested in activities to promote future growth.
The information above is of a general nature only and should you need advice please consult your business specialist.
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