Just like any other responsible business owner, you’re always looking for ways to bring down the cost of doing business. Sometimes it feels like you’ve tried everything. Yet, your office costs are spiralling out of control.
However, getting office costs under control is all about incremental changes. A 10 percent reduction in your utility bill here: a 5 percent reduction in “miscellaneous” expenses there. Don’t make the same mistake as the rest of your competitors and accept high costs as a “necessary part of doing business.” Take the initiative and do something about it.
Right now, the business world is awash with apps. So are useful. Some, not so much. But when it comes to cutting costs, there is one app that really stands out. Outright is a small business accounting tool. It’s designed to help businesses track all of all their finances. But it’s particularly useful when it comes to expenses. You can just log into the user portal and see exactly where your money is being frittered away.
Pool Your Purchasing Power
Bulk discounts are great and very tempting for savvy small business owners. But unfortunately, they’re not always practical. One problem is just how long they take to pay off. Take bulk-buying office stationery as an example. What’s the point of buying 100,000 pens, just to save an extra half a cent on each, if you have to wait 20 years for a payoff? By the time you’ve gotten through all those pens, you’ll be retired.
The good news is that you can have your cake and eat it. Instead of going in for bulk buy deals on your own, grab a friend. Pool your purchasing power with other local businesses who need the same items and all save together.
Get Smart With Office Utilities
By now you’ve probably heard about the importance of switching lights off when you leave the office to save money. But have you heard of variable speed drive or VSD? VSD installations are the next big thing in reducing office costs. They work by varying the rate at which big items of machinery, like HVAC systems work. When they’re needed a lot, VSD ramps up the speed of the compressor. When they’re not needed as much, it turns it down again. These systems reduce your office expenses in two important ways. First, like LED lights, they cut your direct electricity costs. And second, they reduce the wear and tear on your machinery. That means fewer breakdowns and lower maintenance costs.
You might think that bartering is an ancient relic from the past. After all, now we’re blessed with currency. But you’d be wrong. Bartering is, in fact, an excellent way to lower office costs. Recently, a couple of websites have emerged that allow businesses to barter services with each other. Both TradeBank and U-Exchange allow companies to trade services without using money. Thus, it’s possible to funnel more services into your business without incurring any cost. Bartering might not be suitable for firms that are reasonably well developed. But it can be a godsend for startups, struggling with cash flow issues.