If there’s one thing that all businesses have in common, it’s that each is trying to cut down on costs. Every penny counts when you’re a small business, so we’re going to help by offering our 5 tips for reducing small business running costs:
1. Increase Employee Engagement To Reduce Turnover
Statistics have shown that the recruitment and training costs associated with hiring a new employee can cost anywhere from 20% of that employee’s annual salary to 100%, if not more. As a small business, you can’t afford the price tag that comes along with losing an employee. So what should you do?
- Fine tune your hiring process (look at what the job requirements are and make sure that you select someone who has the experience and credentials necessary for the role, and who fits in with the company culture)
- Engage your employees by motivating them with what they want out of the job (a raise is nice, but some employees would be far more engaged if other perks and incentives were offered instead)
- Keep your employees in the loop and make it known that they’re an integral part of your team
2. Embrace Technology
From going paperless and saving on ink, paper, and copier repairs to adopting “cloud” technologies that can streamline any project, technology is the way to go if you want to save. Transitioning your business to one that uses a virtual bill and invoice payment system, for example, will save you an exponential amount of time every month, as well as keep your files more organized and easier to retrieve.
3. Energy Efficient Air Conditioning
If you’re using an older air conditioning system, strongly consider replacing that old energy sucking unit with a newer and far more efficient one. New air conditioning units come equipped with a number of features that promise to not only save you money, but keep you and your employees more comfortable, such as:
- Better temperature controls
- Optimized variable speed drives
- Free cooling coils
TIP: As an extra tip, to prevent your cooling and heating systems from constantly competing with one another and increasing your energy bill, keep a small temperature gap between your optimal air conditioning and heating temperatures.
4. Become A Savvy Internet Marketer
Marketing your business online is not only far more affordable than traditional “offline” methods (i.e. radio, television, print ads), but it opens up your business on a global scale. Invest in giving your business an online calling card and create an attractive and easy to navigate website. You can even begin to market your business online for free through social media sites, blogging, and YouTube.
5. Purchase Refurbished Equipment
While this may put some at ill ease, the fact of the matter is that most refurbished equipment is just as good as brand new equipment – except it doesn’t come with the hefty price tag. Choose a manufacturer that offers a warranty or a guarantee on their equipment as well as if you do happen to get a piece that’s not working out for you, you can trade it in or receive a full refund.
Image courtesy Tax Credits