There are numerous activities that a business has to undertake in its daily operations. From business insurance, to copy machines, to paper stock, to advertising amounts; the sheer number of required purchases for daily operations can be staggering. If you are a business owner or are the manager for a business, you need to know how much money is spent on essential company items.
The need to keep budget costs down
Inflation is on the rise in every economy and it is tough to keep your spending in check and to keep within your budget when it comes to company costs. Office expenses can really add up, and before you know it, you would have overspent the allotted budget for office supplies. If you are conscious of how much you are ordering and spending on office items, you can keep your business costs down.
If you need to reduce your expenses to a minimum, then you need to take the steps of ordering online, cutting advertising costs and going to social media, reducing staff costs, and review business insurance and you will notice a steep decline in how much you are spending on business costs. You can then reinvest that saved money and gain a little nest egg for retirement! Let us take a look at some of the ways on how to reduce office expenses and save money going forward:
Order online for stationery
Large retailers tend to mark up the price of stationery items, as they had to pay for shipping and other fees to get the items to their store. If you look online, you can get the same supply at a much cheaper cost. For example, HP printer cartridges and other printing accessories can be purchased online in bulk for nearly half the cost of a big box retailer. Make sure you are investigating all online purchase options before settling on a store that is close by. If you watch your inventory and then watch for online sales, you can cut your office expenses on items such as pens or paper down to a minimal amount.
Cut advertising costs
Another suggestion to save on business costs is to reduce advertising expenses. With the advent of social media, you no longer need to spend a large amount on advertising your business on offline media. The conventional options were to use television, radio, or newspaper for placing commercial ads for attracting potential clients. Today, social media allows you to advertise to a targeted group of potential and existing customers in your niche at a fraction of the cost of more conventional advertising options.
With the power of Facebook, Twitter, Instagram, Youtube and all of the other social networks, tweeting, sharing and posting pics of your business material has never been easier. There are numerous ways to use the internet for advertising online, social media is definitely the way to advertise, without spending a fortune!
Monitor energy costs
Power costs take up a significant portion of your office expenses, so there is a need to monitor energy consuming appliances at office. Diesel backup generator is the largest energy component in any office. Proper maintenance and operations of the power generator is crucial to reduce fuel wastage. Automated switching of power between mains and backup is essential. Most power outages are usually for just 10-15 minutes, so it is better to provide power through UPS with an adequate battery back-up to power all the appliances at office. Intense power consumers such as AC and elevators can be kept out of the UPS coverage. Usage of energy efficient equipment is crucial so check for energy star rating for your PCs, AC, fans, lighting and other appliances.
Reduce staffing & admin costs
Another way to keep your costs down is to reduce staffing expenses. We are not advocating to lay off a bunch of people or eliminate their positions, as people are needed to carry out tasks for each and every business. Human resources are an integral portion of the success of your business.
We suggest you to reduce the numerous costs that go along with staffing. If you are having a few slow days, ask your employees if they would like a few days off. While they will not be paid for it, they can get some errands to do and a few days off would help. Further, ensure that office operations such as air-conditioning and lighting needs are taken care off with stipulated on/off timing so that power is not wasted when there are few employees working in office.
Review business insurance needs
If you staff take sick leaves regularly, you could opt for a group insurance policy that helps them pay without a hassle. These days there are various low-cost insurance options that can cover even a micro-enterprise of just 10 employees.
All businesses need to have an insurance cover, but you can review your policy to make sure you are getting the best deal out there. With insurance prices skyrocketing in the last few years, you need to perform your due diligence to keep your insurance premiums down. One way to keep the insurance cost down is to increase your deductible. If you are going to do this, make sure you have the funds available, as you do not want the deductible to be unaffordable in case you do need to use your business insurance!