When you’re running a start-up business, every penny counts. Budgets tend to be limited, and you quickly become a master of bootstrap resourcing tips and guerilla marketing techniques. Any profits are quickly absorbed back into the business, and balancing the books is a struggle that most small business leaders are familiar with. Disaster can easily strike for a rookie entrepreneur. However, while most small businesses focus on increasing their sales, there is another way to fatten up your bottom line – making efficiencies and cutting costs. A lot of these activities are intensely practical and can be implemented quickly – so if you’re thinking of a profit fix in the New Year, you could try looking at these ideas to shift your cost base and increase revenue quickly.
Implement A Smart Thermostat
Keeping your buildings heated or air conditioned aren’t expenses that you can completely avoid but even small changes to the general operating temperature can make big savings. Introduce a programmable smart thermostat and you could find the balance between controlling costs and maintaining a comfortable working environment. Work to a customised schedule – generally that means increasing the heating or air conditioning during the morning and then gradually dialling it back for the afternoon. Smart thermostat technology is available, and it quickly learns about climate control preferences, the energy profile of your building and then makes automatic adjustments to maintain the optimum temperature as efficiently as it can.
Set Up Telecommuting
There are tremendous benefits to both employer and employee if you set yourself up for telecommuting. Studies from the US indicate that 80-90 per cent of workers want to be able to work remotely at least some of the time, and it’s a rising trend that can even give a small business looking to attract the best talent without the deepest pockets an edge over larger rivals. Flexible working has a positive impact on staff morale and job satisfaction – which both heavily influence productivity. It can also make a saving for your business through reducing utility costs such as water and electricity, reducing the amount of permanent desk space needed, and winning back time that can be lost to traffic and commuting schedules. Depending on what you do, it can be fairly easy to implement with a few collaborative working tools such as Trello which allow remote collaboration.
Create A Fleet Management System
If your business involves drivers and vehicles then you can really make some cost savings by introducing fleet management systems to give you real-time data on company mileage. Having access to this can help you respond to emerging situations faster, reduce callbacks and optimise productivity, which has a big impact on your bottom line. You work smarter when you can stay on schedule and make quick changes, improving your service and reputation for delivery along the way.
Pool Resources With Other SMEs
Trade associations and local business networks can be goldmines for collaborative working contacts that can help increase your buying power and help you save money by going in together on fixed costs. You could create a buying group that helps to negotiate better terms and prices for members in return for a bulk buy, or create a resource library where you can borrow things like tools as and when they are needed without paying extortionate hire fees or having to buy on your own.