The goal of any profit-oriented business is to increase revenue while minimizing expenses. This is the most efficient way to catapult your business to success. The higher your profit margins are, the more capital you have to grow and expand your business.
However, all of it is easier said than done. In fact, based on a survey by the Small Business Administration, almost half of businesses fail within the first five years, one of the reasons being lack of funding.
Not to mention, the outbreak of the COVID-19 pandemic significantly changed the business landscape, pushing more and more consumers to change their purchasing habits. Now, e-commerce is becoming the main thing that’s causing a lot of retailers and hospitality businesses to encounter financial pressures.
With this in mind, it has become crucial for businesses to think of ways to cut costs with respect to expenses they have in the workplace. Thus, here are some helpful suggestions on what you can do to help minimize overhead costs in running your business.
Switch to Energy-Efficient Appliances
Take a look around the pieces of appliances and equipment you have in your office. Are they more than 10 years old? Regardless if it is a kitchen appliance, an office desktop, or a display screen, you need to switch to modern, energy-efficient devices for a very good reason.
Older machines have difficulty functioning properly; in addition, this inefficiency causes the appliance or equipment to consume more energy, thus increasing costs. Among the most notorious electricity and money consumers are heating and cooling systems. Thus, consider replacing your air conditioning system if your cooling system has been around for many years and has not been as efficient as before.
The number one compelling justification why you need to replace old appliances and equipment pieces is sustainability. The global trend is gearing toward saving Mother Earth by embracing sustainable business practices. In addition, you need to shift to energy-efficient devices to reduce costs. Energy Star-rated appliances can help you save as much as 10 to 50 percent of energy usage.
While you might counter that Energy Star devices may cost a little more extra, it will significantly reduce your utility usage, saving you a lot of money in the long run.
Practice Turning Off Everything at the End of the Day
Even if you have top-notch energy-efficient devices in your office, it is still important to highlight the value of reducing power consumption.
A lot of workers do not really put much value on how much the company is spending on electricity. However, it does not mean you cannot change this indifferent attitude.
Highlight to your employees the importance of reducing power consumption by making a policy about switching off all devices at the end of the day. This little act of turning everything off could save you up to 20 percent of your business’s operating costs.
Here are some other ways you can help minimize energy usage during non-operating hours:
- Unplug everything connected to the electrical socket, including coffee makers, computers, and even cable boxes.
- Turn off computers rather than put them on sleep mode.
- Switch off non-essential overnight lighting.
Utilize Natural Light
When we say office space, what usually comes to mind are tiny cubicles, white fluorescent light, and dead silence. These days, modern offices highlight the value of interaction and camaraderie among employees and management. Along with that is the change in architectural and interior design. Workplaces now have wider windows and clear doors to let as much natural light in.
This trend is good for a number of reasons, including boosting the mood of workers, improving productivity, and of course, cutting off overhead costs in terms of utility. Not to mention, a brighter-looking office looks more spacious and healthy.
Go for Second Hand Equipment
Everybody wants something shiny and new. However, it is not always the wisest decision, especially when your company is just starting out. Rather than following the hype and paying full price for a piece of new office equipment, consider purchasing a secondhand one instead.
Doing this helps your company’s pocket save a lot. Used equipment does not have such significant depreciation value compared with new items. Thus, when it is time for you to replace such equipment, you do not have to suffer much loss if you have to sell it at a much lower price.
But keep in mind too that you need to be careful when scouting second-hand items. You need to make sure that what you are purchasing is safe and effective to use. You do not want to be stuck with something that will cost you too much on a repair.
Running a business is never easy. Hopefully, these tips will give you ideas on how you can cut unnecessary expenses in your office.