Cutting your costs and saving on office expenses is of essential importance, especially for small businesses. This can be the difference between a business that survives and thrives and the one that doesn’t.
Some of the ways you can do this are very basic. Unfortunately, this also means they are often overlooked. We are talking about such essential expenses as the office itself or the utilities. Sometimes these expenses are neglected and not even considered when searching for a way to make a company more profitable. This is a big mistake.
As such, we’ve compiled a list of 9 simple ways you can look at cutting costs and saving on office expenses.
Seriously consider if your office space is optimal for your business. Maybe it’s too big for your needs, or the location is too expensive and without direct benefits to your company. You can find a smaller and cheaper space, or move to a different part of the city, one that will suit your needs in a better way.
You can even consider subletting a part of the office space that you don’t use, or alternatively, think about using a co-working space – All of these options can have a dramatic impact on your expenses and you should not be afraid to consider them, despite how radical they might seem to you at first.
The Covid-19 pandemic at its peak increased the number of people working from home to an incredible level. In June of 2020 more than 40% of the US workforce was working from home full-time. This number was later reduced, but it is predicted that remote working as an option will remain in very high numbers. From now on, working from home will be an integral part of our life in a much more significant way.
By having a part of your employees, or all of them, work from home, you can greatly decrease your overhead expenses. Chances are, your competition is already doing that.
These are not only marketing tricks but very potent ways in which you can make your business more profitable.
For example, you can use a programmable thermostat to cut your air-conditioning and heating costs, without impacting the comfort of your employees or clients. You can also install various passive energy-saving solutions such as double-pane windows, light-blocking blinds, tight seals, or a solar water heater.
If you do a good job at estimating the areas of your greatest need, when it comes to saving energy, you can not only cut your costs but also apply for local, state, or federal energy-efficiency tax credits.
The next group of possible cuts to consider consists of daily expenses that most businesses have.
Buying paper in bulk is often a mistake. True, you can get it much cheaper that way, but if you buy too much you can misplace it or ruin it before it’s put to use. This happens more often than you think. The best way to cut on paper costs is to simply buy the amount that you need.
To do that you will have to carefully calculate just how much paper you use. In addition to that, you can reduce your paper use greatly by printing and copying double-sided, reusing waste paper, or even by simply using smaller fonts and by tightening the margins.
Secondhand Office Equipment
Companies often choose to get rid of perfectly functional office equipment or are selling it when they go out of business. There is no good reason why you shouldn’t use this to your advantage.
Always be on alert for possible sales and you will find essential equipment such as filing cabinets, desks, chairs, fridges, etc., for bargain prices!
Set a Budget for Basic Office Expenses
Sometimes business owners make a mistake in thinking that the budget for everyday office expenses should be unlimited. This is a great way to lose a lot of money and also lose track of your expenses.
By limiting the budget for such expenses you will not only have a much easier time tracking your expenses, but you will also create a much more efficient business on the whole.
Finally, let us consider a few more options for cutting costs that are often overlooked.
There are many services you should consider outsourcing, especially while you are still running a small business.
Research what would be the most efficient way for you to outsource some peripheral services. Chances are you will be able to find affordable outsourced accountants, lawyers, landscapers, cleaners, or consultants. You can even team up with a few other businesses and hire them together.
You can save an amazing amount of money simply by turning off the lights or the computers when they are not used.
It’s estimated that by leaving one computer working overnight you can add $200 or more to your annual costs. According to Carbon Trust, switching off a computer during the night and the weekend reduces its energy consumption by 75%.
This is an incredibly simple and easy way to increase your profit, but unfortunately many are completely neglecting it.
Don’t be fooled, prices are not set in stone. Every chance you get you should negotiate prices and ask for discounts. When you are a business owner you cannot afford to be socially awkward or shy about such things.
Of course, you can always delegate someone to do this for you. You will be surprised how much money can be saved by just asking – it couldn’t be simpler than that.
These are just some of the most basic and obvious ways in which you can cut your costs. But the fact that they are basic doesn’t mean they will have a small effect. On the contrary, implementing them can save your business.
But, search for other ways as well. There are many options out there, and you should pay special attention to the various eco-friendly and energy-saving solutions available. This will not only help the planet, but it will also help you to develop your company and is a must for all businesses today, small or large, that want to go forward and prosper.