Running a small business takes skill, knowledge, and financial prowess, especially in an expensive city like London or New York. That makes knowing the correct way to cut costs while not skimping on quality or consistency of your product vital to growing your business into a successful enterprise. Where do you start? Here are some pointers to get you headed into the right direction.
With the cost of energy continually increasing it is prudent to regularly review your energy bills to see where you may be able to cut back either by switching energy companies or changing some of your office policies and routines. Doing so could save you a large chunk of cash annually that can be used towards other business investments.
When reviewing your energy habits consider such things as:
- Switching to LED Light Bulbs – LEDs last approximately ten years on average and consume significantly less energy than traditional, halogen or incandescent light bulbs.
- Adjust your Thermostat – By turning your thermostat down by only a couple of degrees you can save a ton of money. Consider installing an automatic thermostat that you can program to change temperatures for when you are there and when you are away.
- Turn Off Power Sources – Use power strips to plug in office equipment so that at the end of the day you can easily shut down coffee pots, printers, adding machines, etc. before leaving the office. This not only saves in energy costs, but also protects equipment from power surges that could occur while you are away.
Internet and Phone Line Expenses
New technology keeps telecommunication and internet companies continually investing in better products and creating more cost effective package deals for their consumers. Make a point of reviewing your plan periodically and monitoring changes in the services available. This will keep you abreast of when new, better, and cheaper options come along to provide you with cost cutting opportunities.
Insurance is another often overlooked expense cutting opportunity. You should at the very least review your insurance needs and coverage annually to verify that you are getting the best deal possible while also remaining adequately covered. This goes for all types of insurance from auto, to health, to liability coverage. With so many different kinds of insurance needs insurance is an excellent place to start cutting costs.
Supplies and Operating Overhead
It is easy to fall into the habit of just reordering as you run out of things that you need around the office. However doing so could be costing you a fortune. Cut costs by regularly comparing products from different suppliers to ensure that you are getting the best price. When you think about the amount of printer ink, copy paper, coffee filters, and the like that you use on a daily or weekly basis you will find that even a few cents will add up rather quickly.
One easy way to cut back on all of the above expenses in one move is to take advantage of companies who offer boutique office rentals. Companies like BE Offices provide the space, equipment, and even furniture for you as needed for a low rate. They cover the energy costs and you simply show up and take care of business as needed.
Keeping operating costs minimalized is integral to running a successful and financially solvent small business. By taking the time to regularly monitor outgoing expenses and making changes where needed your business will be able to grow and prosper for years to come.