Most companies will look at sales when they want to boost business. It makes sense — the more money that comes in, the higher the profits at the end of the quarter or year. However, increasing revenue isn’t the only way to make things better or more profitable. In fact, the way we calculate profitability holds the key to figuring out another way to boost a business’s success.
Namely, we subtract expenditures from overall revenue. By reducing the latter figure, we can make a company better overall. How can you save money to the point where it will increase your bottom line? We have eight ideas for you to try out.
1. Shut Down the Power
When your computer stays on all night long, you pay for it — literally. In some cases, a device left plugged in and on from morning to night can cost up to $200 in wasted energy each year. Now, multiply that number by how many computers you have in the office, and you can instantly see the value in switching such electronics off at the end of the workday. If you’re the boss, remind staffers to shut down their computers.
Be sure to tout the benefits of doing so. Even if your employees don’t pay the company’s electric bills, they may care about wastefulness, climate change and other energy-related causes. Knowing they’re damaging the environment could be enough to get them to shut down their desktops each day.
2. Look Closely at Supply Orders
Start by critically considering how many supplies you keep on hand. You can save money here in a slew of ways, all of which will boost your bottom line. Many business owners choose to buy in bulk when they need office necessities — everything from pens and paper to computers and software.
In buying more must-haves at once, you can save. It’s typically cheaper to purchase multiples than to buy a specific supply as a one-off purchase when it’s needed. To that end, you might also consider speaking to the suppliers who provide such bulk items to your business, if you already have such orders in place. Can you negotiate for a lower price? You’ll never know if you don’t try, and you have nothing to lose. Spending less in this area will undoubtedly make your business better and more profitable, no matter how you do it.
Photo: Tero Vesalainen
3. Ship Wisely
If your company has a strong e-commerce presence, then shipping materials should be of the utmost importance to your business. Of course, it’s easy to overlook such an expenditure. How much different can prices possibly be? As it turns out, the right material can be cheap, protective and cost-effective enough to help boost your business’s overall success.
Some companies will opt for e-commerce specific packaging, which presents the business’s logo or colors on the box or plastic shipping bag’s exterior. This option can be great branding for the company. Plus, if you insist upon using items only made from recyclable materials, you can save cash at the same time. If you need further incentive, remember that protective packaging will prevent breakage of shipped goods, too. Replacing such products can negatively affect profits, so make sure you’re wrapping and protecting everything before sending it.
4. Adjust the Light
Natural light is your friend, especially when you’re trying to save money. If you have an office space drenched in sunlight, then forego overhead fluorescent bulbs. Instead, throw back the curtains and open the blinds to let the light in.
In winter, this allows heat to get into the building, too, which can save on HVAC costs. Install sensors on lights in your office so bulbs turn off when they’re not in use. Conference spaces, bathrooms and other communal areas don’t need to stay lit when people are elsewhere, so install new switches and save.
5. Provide Perks
The average company will lose up to 2.5 percent of its revenue as it tries to bring new employees on board and up to speed. You should scrutinize things if your company has high turnover rates. What can you do to reduce this, save cash and improve the business overall?
You can keep staffers happy by sweetening their salaries and health care benefits with perks. These little features don’t cost much, but they make people enjoy working for you. For instance, some companies provide free Netflix accounts to their staffers, or they help pay for their gym memberships. Perks might also include on-site drinks and snacks, activities or clubs, holiday parties and more. These things don’t cost as much as bulking up a benefits package. They do, however, make people more likely to stick around and work with you for longer because they’re treated better.
6. Rely on Job-Posting Sites
Hiring a recruiter, whether they work for an agency or in-house, will cost your business big bucks. The problem is, your company needs new, high-quality employees. What should you do to rectify such a situation?
Rather than spending an arm and a leg on these resources or pricy online job boards, try cheaper options like Craigslist. You can find great candidates through this community site, as well as via university sites. The latter will introduce your company to the ideal entry-level employees with enough experience and education to join the team and work their way up. That kind of longevity is another boon to your business.
7. Market Smartly
If your website incorporates content marketing, don’t carry the expense year-round. Instead, hire writers to churn out a slew of website copy at the start of the year. Then, you can still routinely post to your company’s blog. The only difference is that you don’t have to pay the marketer year-round — they will work for a few months to create everything you need.
On top of that, you can hire yourself to do PR for your business. If you started your company solo, then you’ve probably already done this anyway. It’s important to be unique with your PR campaigns. You want your brand to stand out and offer something new. Once you figure out how to do that, you will have cracked the PR code for a fraction of its normal price.
8. Automate Your Taxes
Stop wasting time and money filling out taxes on your own. Instead, invest in software that will make the task a mindless one. You can protect your company from getting in trouble with the IRS down the line. Better yet, you will spend less than you would on an accountant. Put that cash back into your business and watch as it continues to grow.
These are just eight of the many ways you can save your business money. Put the leftover cash to good use, and you’ll be handsomely rewarded with a well-run company that continues to grow and thrive. All that will happen under your careful, considerate watch.