Aside from the need for self-actualization and a feeling of accomplishment, most people enter the business world for one reason – profit. Simply put, profit is what is left when you take all your income and deduct your outcomes. This means that there are two ways to increase your profit: A) by boosting your productivity and B) by reducing your overhead. Seeing as how most guides focus on the first, today, we’ll write about the latter. With that in mind, here are several effective methods to reduce your SMB’s monthly costs.
The first thing you have to do as an SMB is face reality and admit that you don’t really need a landline. Sure, from a major corporation this is expected, but when it comes to a 2018 small business, you can do just fine with just online contacts. We’re talking about social media networks, emails and IM software. In this way, instead of paying for both the landline and the broadband (which is mandatory), you can switch to just paying for the broadband, which, directly saves you money. Later on, you can reintroduce it, yet, for the time being, this is one communication channel that you can definitely do without.
Another trend worth embracing is going paperless and replacing traditional documents with those in digital formats. Emails are more efficient, more pragmatic and easier to store than paper documents, but this is just one of the reasons why this is so relevant. An average office worker prints out about 10,000 papers every year, which creates a massive expense on your company’s list. To this, you need to add the fact that printing also consumes ink and toner. In a way, by going paperless you’re not just reducing your company’s overhead but also reducing your business’s carbon footprint.
Taking your bills for granted is an expensive habit, one that causes you to waste a lot of your hard-earned profit. To avoid this, you might want to consider subscribing to a platform that allows you to compare electricity prices. In theory, this doesn’t sound that hard to pull off, yet, in practice, this is something that requires continuous work. Prices constantly fluctuate, which is why you need a service capable of tracking them for a prolonged period of time and then notifying you if there’s a trend that deserves your attention.
A lot of people have a misconception that open source is the same thing as the free version of the software. This, however, is not the case. With software that offers different versions, free is always inferior to premium, while open source software has no such restriction. When you opt for Open Office, what you get is a complete version without any extra features. This is just one of the alternatives to the standard MS office that you can use. Nowadays, even Google has some more than decent alternatives.
Lastly, one study suggests that paying a corporate bill in person costs about $12, while doing so online may reduce it to $1.5 per bill. Apart from this, paying bills online is simple and efficient, seeing as how you can do it even in the middle of the night. You don’t even have to leave the office or your home, which, indirectly also saves you a small sum. Just think about all the gas and time you’ve spent in order to pay the bills over the last decade. With this trend, this shouldn’t be a concern anymore.
The main reason why we used these exact five tips is that they save you money without reducing your income or efficiency. Keep in mind that lowering your outcome isn’t the end goal but merely a means to an end – you’re doing it to increase your profit and not the other way around. So a frugal method that leads to lower profits (a worse raw material quality that leads to the worst quality of supplies) may not turn out to be so frugal after all.