(Newswire.net — April 9, 2019) — Every company wants to become more profitable, but it can be a tricky undertaking for SMEs with a fixed set of overheads. We take a look at some common sense ways you can cut costs and boosts profits without compromising on quality.
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Refine your budget and save for emergencies
Most people eventually learn to stick to their personal budget because they have to – but yet for some reason, when it comes to company finances, we forget all the basics. Sticking to a set monthly budget, saving for a rainy day, putting off purchasing new items until we really need them, and learning not to rely on credit are, if anything, even more important when it comes to your business.
Start with a basic monthly budget, which will force you to evaluate your recurring expenses. Put down and itemized on paper, areas where you could be saving money are likely to start jumping out at you right away. If you find you frequently have expenses you haven’t budgeted for, get to the reasons behind them and address them once and for all.
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Embrace cloud computing and outsource your IT
It’s never been more important for small businesses, SMEs and startups to have access to technology, apps and software that can help them become more competitive. Buying, maintaining and servicing your own servers and doing your IT in-house is expensive and time-consuming, and really isn’t necessary anymore. Partner with an IT and cloud computing partner like Tech Brain who can help you with all of this and more for one affordable, predictable monthly fee and save yourself time, money and stress.
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Encourage all your employees to become problem solvers
Allowing your employees to take ownership for their tasks and feel like they have a say in the running and decisions of the company they work for has been shown to dramatically improve productivity. Outside of their job descriptions, your employees can also become a valuable source of new ideas, clever solutions and even business network connections. Encourage brainstorming, ask for their input frequently, and incentivize great ideas. You’ll almost certainly be rewarded with solutions and ideas that might never have occurred to you alone.
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Buy second hand and repair before you replace
For whatever reason, we have this idea that everything in the workplace from the delivery van to the coffee machine has to be bought new and on credit. Just because something can be legitimately written off as a ‘business expense’ doesn’t mean you have to spring for the latest and flashiest! It won’t look all that impressive to your clients when it ends up getting repossessed, after all.
Rein yourself in and practice common sense: repair before you replace and replace second-hand before you buy new. Professional repair companies like Fixitt are frequently able to repair appliances at a fraction of the cost of replacing them, and have a large stock of spare parts on hand. Aside from the money you’ll save, it’s a much greener approach to business too.
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Consider bartering
Bartering is finally coming back in style and done right can save you a small fortune in cash. If you have a useful B2B service or product, leverage it and exchange it for the services you yourself need. There is a world of opportunities out there once you adjust your perspective a little. Not everyone will be open to the idea at first, but if you can put down on paper how both parties can benefit, ideally with a tidy figure attached, most people will come around.
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Train junior staff internally
Hiring someone with talent and ambition who’s a little green behind the ears (and therefore more affordable than someone with years of experience) and training them up in-house can be massively rewarding and mutually beneficial. Consider offering mentorships or apprenticeships, especially if you have a little more time and expertise than cash!
You can also empower existing employees to upskill themselves in areas where you can’t provide direct training – such as digital marketing or HR. So many free or low-cost courses are now available online, and if you can both benefit from a staff member taking one, work together to make it happen.
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Reconsider your physical office space
Renting office space can be alarmingly expensive, especially when you consider it’s a hefty monthly overhead on an asset you’ll never own. If you’ve already found the perfect place, seriously investigate your purchasing options. If buying isn’t an option, there are other ways to slash this expense considerably. If you’ve got more room than you need, consider making some space available to share with another company, or even a solo entrepreneur who can rent one room from you and make use of your internet and office equipment. Allowing more staff to work remotely and downsizing to a smaller office is another option.