Some of the links in this post may be affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you...you're just helping re-supply our family's travel fund.
Running a business can be a costly affair. You have so many expenditures for a wide variety of things, such as parts for products, wages, utilities, maintenance, vehicle servicing, etc. Because these things are such a tremendous expense, it makes sense that you discover ways to reduce the cost of doing business. By making savings in several areas, you will boost your profits and put this money back into the company, and enable more growth. A wise business owner understands the need to always be aware of the bottom line. So, to help you out, here are a few easy ways to reduce business costs.
Reduce the Cost of Doing Business
When was the last time you checked your insurance policies? If you have got into the habit of just renewing ones, it makes sense to do a brief investigation and see if you can get your insurance cheaper elsewhere. Due to the amount of insurance you may need like general liability insurance and small business liability insurance, you are probably using a variety of different insurers. This could mean that over time the policies have been altered, and it is now possible you are paying for the same type of insurance more than once. In addition, as your business has changed over time, you may be paying for something you no longer need. So, investigate your policies and see if you can find them cheaper elsewhere. You may also be able to merge all your insurances with one provider now. This should save you time, hassle, and money.
It also makes sense to investigate if you can get your basic necessities like gas, electricity, and water from a cheaper provider too. If you want to make some real savings in this way, why not invest in some solar panels. That way, you can get electricity for free, and you may even be able to sell some back to the grid when you are producing a lot. Find out about feed-in meters to do this. Additionally, solar panels on your roof will show the local community that you are helping the world reduce its carbon footprint.
Staff can be an enormous expense, so you will want to be making them work for you. First, it is in your best interests to discover some motivational techniques, like offering rewards to increase employee engagement. This way, you will suffer from fewer sick days and more productivity. You also need to get tough on bad employees. All businesses have them, and some business owners have no clue as to how to get rid of them. The fact is, it does take time.
You need to document every interaction with these bad employees, demonstrate how you have given them changes, and show how they have continually failed to meet your standards. Not only does this give you an extra staffing space for a better employee but, you will earn more respect from the staff that you have. Being tough is needed in business, and sacking people is one way to show this.