Work smarter, not harder. That’s the mentality you should take when you’re looking to maximize your company’s profit margins. Is it costing you more money to run the business than it is turning out in revenue? Instead of throwing resources into boosting sales, look for where you can eliminate inefficiencies and reduce your operational costs. Read on to learn about some cost-saving improvements to help your business run smoothly and boost your profits.
Revamp Your Mailroom
Brick-and-mortar stores are at the brink of extinction. It’s time to adapt your business to the new era of online shopping. Traditional mailrooms are inefficient, often lack the space for staff to store packages, and require a receptionist to manage drop-offs, pick-ups, and basic security. Cut the overhead cost of managing a mailroom by upgrading your space with a commercial parcel locker.
Commercial parcel lockers eliminate the involved process of accepting, logging, sorting, and distributing packages. There is no need for an attendant, as the responsibility of picking up the package falls on the person who ordered it, and a built-in surveillance system makes sure theft and missed deliveries are recorded and reported. You can customize the size and storage capacity of the lockers, and even coordinate them with the building’s aesthetic.
Incorporate Paperless Payments
Evaluate how you handle payroll and invoicing. If you haven’t already, make the switch to paperless accounting. Electronic accounting cuts overhead costs in the short-run and in the long-run. Organize spreadsheets, bill clients, and distribute checks in a fraction of the time it takes to get through regular financial upkeep with a traditional paper system. Not only will you save money on office supplies, but you could also incorporate an accounting and invoicing software instead of relying on accountants, saving you money on employee wages for years to come. I guarantee both clients and employees will appreciate the switch to paperless accounting for speed and efficiency purposes.
Shop Around For Deals
If you rely on vendors to keep your business going, make sure you’re getting the best price the market has to offer. Shop around for better deals and set up a bidding system between vendors. Ask a few different vendors to give you a quote, then bring up the returned bids with other vendors to get more competitive prices for the products you need. Save time and money by letting the market work for you!
Once you’ve found the vendors that work for your scale and budget, ask if they offer discounts on invoices that are paid early or consistently on-time. Many vendors will give you a small discount for being a reliable customer. When it comes to decreasing operational expenses, changing your habits to save money counts just as much as cutting unnecessary costs.
One more reason to help save the planet: it saves you money, too. When you make energy efficient decisions, you dramatically cut the overhead cost of running a business. While switching over to energy-saving solutions may seem cost-heavy on the front end, the change will pay for itself and then some as your company grows.
You don’t have to renovate your entire space with eco-friendly products to start saving money. Here are a few ways to start you off on your path to saving the planet AND your bottom line:
- Replace the light bulbs in your office: switch your traditional lighting to fluorescent and remember to shut off the lights when no one is using the room.
- Switch to paperless accounting: cut costs of office supplies and prioritize online communication with vendors and clients whenever you can.
- Insulate your office: if this is done well, you’ll be able to save money on your HVAC bill that might cost a fortune during extreme climates. This also works to reduce the number of resources you’re expending, further improving the environment.
If you serve clients worldwide, you know how expensive it can get to provide them with the top-rated customer service your company is known for. Airfare, accommodations, and local transportation like renting a car rapidly eat away at profits. Business trips waste time when the employee is not actively networking or serving the client, consume resources that could otherwise be reinvested into the company, and remove employees from the office for days on end, making them indisposed to more local clients who may need their help.
To help improve office efficiency and potentially save your company thousands of dollars, arrange a video-chat with your client to discuss their needs or concerns. You can still provide stellar customer service through telecommunication and use the savings to improve your business.
Incorporate as many or as few of these tips as you want to reduce your operational costs. Remember, the money is in the margin and a handful of “small” changes can result in a dramatic reduction in overhead.