Running your business, you have likely thought to yourself, how can I improve my profitability? There are inexpensive ways to reduce costs, which can add up quickly and improve your profitability.
Reducing your utility expenditures
Reduce the amount spent on heating your workspace by weather-stripping doors and installing a smart thermostat. The weatherstripping will assist in reducing heat loss throughout the day. The smart thermostat will allow for a heating schedule to be established, resulting in less heating during non-office hours.
Turning off lights and computers before you leave work results in significantly lower energy consumption throughout the year. Turning off computers at night also helps to ensure that computer updates are completed and your business is not losing time due to un-updated computers.
Utilize power- A power-strip (a power bar or surge protector with a switch to disconnect power) allows for a quick disconnection before you leave and quickly switch it back on when you return to work.
Motion sensors on lights can be installed to save electricity throughout the day for areas of your workspace not being used; this will result in lights not being on constantly throughout the day and being used only when an employee is within the vicinity.
Cut that landline
If landline usage is minimal, consider completing a cost benefit analysis to determine if it would be beneficial to use a business cell phone instead.
Am I subscribed to that?
Review business subscriptions on a quarterly or annual basis. Ask yourself:
– Does the business use this subscription?
– Does the subscription add value to our process?
If the answer is no to either of these questions, consider ending the subscription.
Take advantage of supplier’s discounts
Many suppliers offer a discount if you pay early. If you see terms similar to 2/10 net 30 – this means that you get a 2% discount if you pay within 10 days with the bill being due in 30 days. Two percent may seem insignificant, but if you consider the short period of time, this is a high rate of interest. These discounts can add up quickly and should be taken advantage of if the cash is available.
Shop around
Suppliers and providers will offer discounts and better rates if you are willing to swap from one of their competitors. Examples of places to look for discounts are insurance & phone providers. The possibility of losing business may be sufficient pressure for the current supplier to provide incentives for your company to stay with them.
Reconsider the frequency of services
Consider is how often services, such as cleaning services, are being used. If these are weekly services, consider reducing the frequency to bi-weekly or even monthly.
Reducing or condensing meetings
Meetings can be important to organize, express ideas and run your business. However, they can be expensive, and weekly meetings may not add as much value as you want. If you do not need weekly meetings, you can use Apps such as idea boards for employees to share their ideas. Alternatively, find ways to try and reduce the length of meetings to keep productivity up.
Go paperless
Reduce the amount spent on ink, paper, and electricity by going paperless. There is a variety of inexpensive software available to assist your office in being paperless; this will result in cost savings and increase record accessibility.
Many businesses and individuals are paperless and would prefer being emailed invoices and documents virtually.
About the author
Justin Walske is a graduate of the University of Northern British Columbia (BComm.) and has been working at DMC for two years. Since graduating, he has been pursuing the Chartered Professional Accountant (CPA) designation.
He is passionate about European history from the 12th century to the 1970s and has a particular interest in how changing political and economic landscapes lead to conflicts, whether it be military, political or economic.
