As an SME it’s easy to rack up more expenses than what you are generating in revenue. Spending on suppliers, vendors, employee perks and taxes can get out of hand in the blink of an eye unless carefully planned. But there are several ways to limit expenditures that, by focusing on improving efficiency, can even make a company more profitable.
Palletise large shipments
If you are shipping goods as part of your basic, regular practice, how you do so is a crucial factor in your business’s operations. It goes without saying that a reliable pallet courier that offers competitive prices and excellent service should be used.
Re-negotiate contracts with suppliers and vendors
Just about all your goods and services from suppliers can be looked at, and you’d be surprised at how many people will agree to a lower price to save from losing you as a customer. Start with a simple “Is that the best price you can give us right now?” then continue to communicate with conviction and authority in order to get the most out of your haggling skills.
Utilise Cloud Services
Does your office really need an in-house server? By using cloud services for both file storage and more administrative programs, you can entirely eliminate the need for a costly internal setup, which may include not just hardware, but even a dedicated department, with the price of cloud services usually far less than what you will otherwise have to pay in infrastructure and licence fees. As an added benefit, cloud applications allow you to access the data from anywhere, be it from home or when on a business trip.
As with the previous point, cloud-based apps allow for telecommuting and remote work. Encouraging your employees to work from home (part or full time) will result in both direct and indirect savings. Direct because of reduced office overheads (utilities, water etc) and indirect because of many health and associated benefits. Studies show that telecommuting benefits both the employee and employer, where reduced stress, larger talent pool to choose from and higher productivity are some of the benefits.
Instil a money-saving company culture
It may go without saying, but the way you handle company funds will be mimicked by your employees. Lead by example, and they will follow suit. Encourage employees to save on purchases, and to always look for the best price. This can be on something as simple as office supplies to complex technical solutions. Utilise point systems with airlines and hotels, and choose the same ones every time it’s time for a business trip. This can enable you to pay a whole trip with points earned in the future.
Minimising expenses does not have to be hard, but it will require planning, planning and more planning. It may take some time for some actions to result in noticeable differences in the bottom line, but striving to achieve efficiency in all areas of business practice has its own rewards. By streamlining your company finances, you will set the foundations in place for long-term growth opportunity.