If you are a business owner looking to increase the profitability of your business, the one thing you should try to avoid is focusing on bringing in more money. Whilst that is important, vitally important in fact, it is not always the solution you need to grow your bottom line.
The successful business is one that is built on a model of keeping operating costs low at the same time as actively seeking new business. Here are a few ideas for cutting costs for your business so that there is a greater margin between outgoing and incoming money. That’s where the profit maximises and what you should actually be focusing on.
1. Recognize Seasonal Rises in Expenditures
No matter where your business is located in the UK, the first thing to be aware of is that operating costs will fluctuate due to seasonal influences. Sometimes these factors are related to atmospheric conditions such as cold, snowy weather in the winter and hot, humid days in the summer.
As you spend more on keeping your place of business climate controlled, that narrows the margin between what you are paying out and how much you are bringing in, thus reducing your profits by that much.
Instead of paying high costs for heating your business in the winter with conventional boilers and electric heat, why not make the switch to energy efficient electric infrared heaters that can save up to an amazing 90% of your total outlay on the cost of heating?
2. Create a Company Culture Built on Conservation
It is not logical to expect the boss to be responsible for reducing all costs because there are lots of people using electronics, controlling temperature and operating machinery each and every day. From office staff to production personnel, it is imperative that you create a company culture built on conservation. Make each department or each team responsible for seeing to shutting down all equipment and electronics at the end of each day.
Whilst the computer mainframe probably needs to run 24/7, all office computers don’t need to be on so they can be turned off at the end of the day. In fact, that is not enough either because everything that can be plugged into an electric socket still continues to draw a minimal amount of power even when switched off. Encourage workers to not only turn off their computers, equipment and machinery but to also unplug whatever they can. Keep doors and windows closed when climate control is in use and only use LED or CFL light bulbs that can save hundreds, if not thousands, of pounds each year depending upon the size of your buildings.
3. Go Paperless Wherever and Whenever Possible
Another huge expense is the cost of paper you use on a daily basis. Whenever possible, go paperless. Ask customers to choose electronic receipts and communicate via email when practical. Not only is the cost of paper sky high but think about all the ink that needs to be used when printing hard copies. Encourage staff to use the backs of paper for notepads and to refrain from printing anything that is unnecessary.
In addition to the cost of paper and ink, printers and copy machines are expensive to purchase and the electricity it takes to operate them would be omitted. Besides, think of just how much you will be contributing to better ecology by reducing the amount of paper used each and every day!
A Final Thought for the Day
One final point that you probably hadn’t considered is that today’s consumer is looking for something more from the brands they deal with. Millennials are passionate about buying from companies with a social conscience. Not only will you be reducing your operating costs by conserving energy and eliminating waste but you will be growing your customer base as well.
Attract new business from the growing number of conservationists and you are increasing your income while working to reduce your expenditures. It’s the magic formula that works every time.
About the author: The previous post was written by a contributing author to Realty Biz News