Your revenues are down, your sales are steady, supply expenses keep rising.
“It’s the weak economy” is the common refrain heard in many meetings. Many of us would nod our heads in agreement with the premise. Have you really thought through all of the factors affecting your bottom line? Money coming in the front door seems to always be the focus of any business. What about EXPENSES? You know, money going out the back door.
There are many expenses facing every organization. Here are just a few:
- Material costs
- Office supplies
- Utility costs
- Training, meetings, and space
Fortunately, many of these are fixed costs and with a little creativity, you can reduce some of them. Less money going out the back door in a time of slow business activity can mean the difference between a business that survives and one that fails.
I can’t lower wages and I already have cut back on logo ink pens and notepads.
We can all agree that our employees are the heart and soul of our business. I would submit to you that you make wages and benefits be the last thing on the chopping block. Every other expense item incurred by your organization should be put under the microscope instead. If you have a large operation, something as simple as cheaper toilet paper and shutting off unused lights can add up quickly. A regular program of price shopping with regards to materials and supplies is a great way to add dollars back to your bottom line.
Utility costs are often an overlooked savings opportunity. Many local utilities have incentives specifically targeting business and commercial operations. Here in Las Vegas, NV Energy offers a whole range of incentives to small and large businesses. Simply visit your local utility websites for opportunities to save.
Creativity and thinking outside the box are key to shaving costs. Ask your employees where the waste is. You know that your staff knows more about the operation of your company than YOU do. They are in the trenches, living it daily.
Training, Meetings and the Space to Conduct them
You may have noticed the last expense item is training, meetings, and space lumped together. This was not a grammatical error. All of these are potential revenue generators or expense drains. Proper training obviously makes your employees better and can easily lead to more business. Lack of training results in poor employee performance. Part of that training can easily include cost savings and expense reduction. Teach your team to save!
Space comes at a premium for most businesses and there is little to spare. Many companies have resorted to renting office or meeting space at restaurants, professional rental companies, or hotels. This is one area where there may be a perfect solution to reduce your expenses. The Beacon Center is a low cost, hourly venue that can help reduce the expenses associated with training, meetings or any activity that your business doesn’t have room for.
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