Undoubtedly, whether you are a seasoned business owner or an entrepreneur who is just starting out, chances are that your priorities lie in cutting the costs of doing business. This is because besides increasing profits, cost-cutting affords you the opportunity to invest in your own success. And the good news is that there are numerous creative ways that entrepreneurs use to cut costs. Below, therefore, we take a look at 5 strategies that should see you slash your expenses efficiently and quickly as follows:
1. Switch out light bulbs
While a majority of us have switched from traditional incandescent bulbs to compact fluorescent lamps (CFL’s) at home in an attempt to save on energy costs, the same scenario has not been replicated in our workplaces. Admittedly, CFL’s are more expensive than incandescent bulbs but their cost savings in the long run are worth it. In addition, they use up to two-thirds less energy than traditional bulbs and last ten times longer.
2. Turning off computers
Needless to say, energy costs are major line items each month. A simple way to cut on these costs is to turn off laptops or computers when you know that you will be away from your desk for extended periods of time. If you are leaving the office for the day or heading out to a meeting, it is prudent to turn off the computer. Alternatively, you could consider using an automatic device that can turn off items irrespective of the time of day. Doing so will not only save you money, but it will also prolong the life of your laptops and computers- a win-win situation for the cost conscious business owner.
3. Recycle and reuse
As obvious as it may seem, always ensure that you reuse your scrap paper, print on both sides of the paper whenever possible, and avoid printing out every correspondence that you receive. It is also advisable to recycle toner cartridges and paper. This is aimed at cutting printing and copying costs. Large office supply companies are renowned for their special discounts on certain products for businesses and organizations that utilize their recycling programs.
4. Equipment restoration
If your business uses manufacturing or electronic equipment to develop products, consider equipment restoration as a way to help you save money. For instance, if certain functions on your machines no longer work or some have even stopped working entirely as a result of electrical failures, try seeking out companies that may get them up and running once more. The cost is likely to be significantly lower than what you would incur in replacing them with new equipment.
5. Multiple bids
If you are working in conjunction with a consulting service or hiring a vendor to undertake a particular project, it is advisable to allow as many people as possible to bid on the process. Do not hire the first organization that you come across as chances are that you may be able to secure a better deal by looking around. Generally, it is recommended that you obtain at least 5 bids before settling on the most beneficial. Also, you do not have to choose the lowest bidder, but always ensure that you have quotes from different vendors so as to make comparisons.