No matter what time of year it is, the amount of profit your small business nets is directly proportionate to the ratio between income and expenses. If you want to grow your bottom line, then it stands to reason that you would need to spend less in operating costs. Are you looking to increase your earnings this summer? Consider some of the following tips for saving money as a place to start.
Intelligent Use of Energy
One of the biggest operating costs for any business of any size is the amount of money spent on energy. Summers are especially difficult in Australia because the days can be long and hot, which would necessitate running the air conditioner. If you haven’t made the switch to renewable energy, look for ways to reduce the amount of energy provided by fossil fuels. Keep lights lowered, thermostats set higher and always unplug any equipment that’s not in use. Battery operated devices will require a trickle if left plugged into, so make it a habit to unplug everything when going home for the night.
Choose Online Services Wherever Possible
One of the reasons why so many businesses are offering online services is because of the huge reduction in overhead this provides. Now you can keep tax records online, lodge a tax return online, and even conduct sales meetings online rather than paying the cost of travel – another huge saving to be realised. You might also want to consider offering some of your company’s services online as well, which would further reduce your overhead. Let employees work from home where possible to further reduce the amount of energy being used on-site. In other words, do as much as possible in the digital arena as you possibly can. This means going paperless as well!
Consider Automation in Processes
So many people have a fear of automation in the workplace because they fear for their jobs. Actually, there is more to automation than simply a reduction in manpower hours. Automation on assembly lines can improve quality control by reducing human error, and although your staff may rebel at first, they will soon see that their jobs are secure because they can be floated to areas which can’t be automated. Not only can you decrease losses from waste but you can produce higher quantities as a result of saving money through automating processes.
Establish a Storefront Online
In the past, if you wanted to increase your sales you would typically increase your sales staff. With more than 75% of all consumers and businesses shopping online, it pays to develop an online storefront. This not only is less expensive than paying additional staff but is also a way to increase sales because you can reach a much larger audience. Spend less and earn more!
It can’t be stated enough just how important to your bottom line saving money can be. Whether you choose to convert to alternative energy sources, reduce the amount of energy you utilise or automate processes to save on labour, there is always something your business can cut back on to chip away at the operating costs.