Here is Part 2 of my blog on how to save money in your business.
In the first instalment on how to save money I talked about:
• Having a budget
• Ensuring your bookkeeping is up to date and accurate
• Debt collecting
• Reviewing your expenses
• Assessing what software and apps you’re using
• Buying fuel the right way
• Streamlining processes
• Shopping around
• Asking your bank for a loan rate cut.
In this instalment, I continue on with almost as many great and practical ways that you can continue to save money in your business.
Remember we’re in business to make and save money (not lose it) so keep reading to learn how.
Review your marketing
I am not talking about cutting your marketing budget but rather, knowing what is working or not and adjusting accordingly. If you are tracking your leads and you know what is generating leads for you, then you can manage that accordingly. You may find that a certain strategy does not equate to relative results. Assess if it’s the strategy or how you are implementing that strategy. If it’s the former (rather than the latter) then cut that strategy and put your funds into something which is working well.
Buy in bulk
It’s always been a case of something costing less because you buy in bulk. Look at business cards; often by paying a small $20 you can double the amount you receive. Just remember with anything you buy in bulk, ensure it has a shelf life and won’t become obsolete. Printer cartridges are a great example; if you buy up for a certain one and it dies and you buy a different brand, you may be left with a heap of cartridges you cannot use and cannot return. Find that right balance in your bulk buying and forward think about what could happen with too much stock.
Switch to online for your stationery and printer needs
When you walk into a lovely retail outlet (I won’t mention names, but we all know the stationery outlet which has everything for your office needs) it looks great, has a massive range and you can get lost in it for ages – but by shopping online you can avoid impulse buying, save yourself time (remember time is money) and get far better prices. Personally (I’m not on a commission here!) I shop at Skout Office Supplies and if you purchase over a certain level, the postage is free. It’s a local Aussie business with great service and real (Aussie people) at the other end.
Go paperless (check out my eBook on this topic) so you need to have less paper and ink usage
Plus it’s quicker to file (and find) things electronically. There is no need for physical space (which costs money) – just ensure you have excellent backup processes – which you’ve tested to ensure you can retrieve files.
Everything from LED lighting to sensors that switch off air conditioning or lighting can be not only good for the environment but also good for your purse strings. Printing double-sided (or avoiding printing) might just be a few cents per page, but every little saving adds up. Even just adjusting the aircon a few degrees can make a difference, without being uncomfortable for those in the building.
Follow up on your quotes
This is an excellent sales strategy but it actually saves you money as well. When you prepare a quote, it takes time (and time is money). If you don’t follow up on your quotes, then your conversion rate drops, which means you have to do more quotes in order to get the same amount of work – that is, you have to work harder for the same money. A better conversion rate means you need to do less to maintain current levels, and less time means more money. Plus, if you increase your sales conversion rate, you’re increasing your income. It works either way!
Cut meetings down
Meetings account for a huge chunk of the average time we spend at work. Even cut to e-meetings, we should keep them ‘short and sweet’. Have an agenda with the time allocation for each point. Have a timekeeper to remind us to stay on track and keep it short. Ensure all participants are focussed during the meeting, so it runs efficiently. Encourage any ‘side discussions’ to occur on the side if the entire group don’t need to be in on that conversation.
Consider shorter days or a 4-day week for your staff
If you talk to your team, you might find they actually love the idea of a 4-day week – who wouldn’t like a long weekend every week!? Some staff need the income, but others will jump at the opportunity. You won’t just be reducing salaries by 20% but also your overhead costs, electricity, power etc. What you’ll find is that people will work more effectively during the shorter days they are at work and won’t need to ‘pull a sickie’ to go to the dentist. Naturally, ensure how you implement this legally under your Award and HR requirements.
Get rid of the dead wood in your team
You should cull any employee which is unproductive, doesn’t have your business’ best interest at heart and essentially is causing you stress and grief. This must be done in the right way, but there is a heap of great employees out there – so don’t put up with the wrong person on your team. Whether you fear them, feel sorry for them or just don’t have the time to numerously, repeatedly and continually correct the situation, there are HR experts who can assist in the process if you need a helping hand.
This is just the tip of the iceberg when it comes to savings – remember also your personal budget. If you don’t waste money personally, then you’ll need less to live on comfortably, you won’t have to draw as much which may in fact reduce your personal tax as well. Personally, I prefer to pay more into super than tax … not that I’m offering tax advice. That’s when a great accountant will help you.
These save money tips are just generic; every business is different, as are their opportunities. If you’d like to discuss how you can improve your business, raise your bottom line profit or grow your business – then give me a call on 0411 622 666 or fill out the contact form on my website. I’d love to talk to you about how I can help you improve your business. My passion is your potential.