Easy ways to reduce your operational costs for a big impact on your bottom line without limiting your small business growth
It’s no secret that running a business can quickly become incredibly expensive. Regardless of the size of your business, operational expenses can spiral out of control before you know what’s happened, and if left unchecked this can lead businesses to declare bankruptcy. However, it doesn’t have to go that far – if you’re careful, you can catch your spending before it gets out of hand.
Here are a few ways your business can painlessly cut down on operational expenses without having to make too many sacrifices.
You don’t need to reduce the amount of business you’re bringing in to downsize for the sake of saving money. It’s possible that you just need to use your resources, such as your office space, a bit more efficiently.
While many people might see a larger space as the goal, that’s not always the most cost-efficient solution. The average sales price in Manhattan was $1.9 million for condos in existing buildings in the third quarter of 2017. With real estate prices climbing like this, sometimes it can be in your favor to look for a smaller space in Manhattan to lease out for your business. The moving costs might be high, but the long-term savings could be worth it.
Get The Right Equipment For The Job
Just because you’ve got your heart set on the most expensive, high-end equipment out there doesn’t mean it’s necessary to get the job done right.
When money is tight, it’s important to plan for what is effective, not necessarily what your end goal is. For example, let’s say your company requires you to own an excavator. Excavators come in three sizes: compact excavators, mid-size excavators, and large excavators. While it might be nice to one day own a mid-size excavator for larger jobs, you might only need a compact excavator for the time being. Budget based on your current needs, rather than far-off projections.
Go Green To Save Some Green
Saving energy isn’t just great for the environment; it’s great for your wallet, too. Some eco-friendly measures are more cost effective than others, but any environmental change is worth considering at least.
Try to source some of your company’s necessary materials from environmentally friendly sources or providers. Often, these will come at a lower price, since they contain recycled content. Stainless steel used in metal fabrics, for example, contains greater than 60% post-industrial and post-consumer content recycled material. This will ultimately reduce the environmental impact of your business, as well as saving you money.
Get Tech-Savvy For Savings
With technology changing all the time, there are constantly new methods being developed that can save you and your company when it comes to operational expenses. The internet alone has made it possible for businesses to exist virtually paper-free in some situations.
While this might not seem significant for operational expenses, printing documents and purchasing printing supplies has a huge long-term impact on your budget. The average office worker prints 10,000 pages per year, at an average cost of $725. Going paperless and using technology in smart and innovative ways allows you to invest this money into other areas of your company instead.
Budgeting and calculating operational expenses can be a challenge for any small business owner, especially when money is tight. Using these tips can hopefully help you get started on reducing your operational costs so you can see an overall increase in profits, no matter the size of your business.
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