Contributed post
When you run a business, you want to make as much money as possible. After all, you only have a fixed amount of time to do everything during the week, and you want to know that whatever time you do have is spent well.
The problem is that many business owners don’t realise how they could be making more money using their business, and so they miss out on critical opportunities. Take a look at some of these ideas to boost your ailing company finances.
Place Larger Orders
Your suppliers will usually offer discounts if you place bigger orders with them, so start thinking of ways to do this. If you order a lot of non-perishable items, think about holding them in inventory somehow, either in a storage room or a warehouse. Yes, it might take up space, but if you have unused areas on your premises, storing large inventories can save you money overall.
Turn Your Power Off Automatically
Businesses spend a lot on utility bills. It’s a significant cost of staying operational. But could you be paying less here? Consider using a smart meter to see how much energy your business costumes in real time. Fit automatic lighting that only switches on when it detects nearby movement, and turns itself off the rest of the time. Use a programmable thermostat too, to make sure that you’re only heating or cooling your premises when people are using it.
Cut Your Recruiting Costs
Traditional and online recruiting can be expensive. But with job board advertising, you can potentially save money. Recruitment is a significant expense. The total cost of recruiting a low-skill worker, for instance, can be around a third of annual wages. It can be even higher for more senior roles, all the way up to a year’s salary. Saving money on recruitment is, therefore, essential.
Pay Per Project
Many consultants and contractors like to charge an hourly rate because it gives them the option of charging more money for their services. People you hire to perform tasks for your business can keep working (perhaps slowly) and not provide you with value for money. It’s a far better idea, therefore, to negotiate deals where you charge per project. Not only do you have a clear idea of how much you’ll have to pay, but there’s usually less scope for others to inflate the final price. In short, cost overruns are less likely.
Rent Out Extra Space
Does your business have extra space available? If so, think about renting it out to somebody else. Some space-sharing schemes allow you to create custom renting arrangements with other business, including charging them by the day for keeping products in your warehouse or using space in your offices.
Offer Extras
Making extra money can sometimes be as easy as offering convenient extras alongside your main product, just as supermarkets provide snacks and treats by the checkout. Offer low-cost items which complement your main product and add to your total profitability. This could be anything with a substantial markup.