Perhaps one of the fundamental aspects that any business should consider in their regular review stages is the way that they can save money and subsequently, increase their profit margins. Whilst many organisations will focus more on the ways to increase sales, which is clearly important for any business to deliberate, considering cost reduction strategies should be equally crucial – particularly because sales are not wholly controllable. In our guide, we will highlight some of the best ways to save money and increase your profit margins, without compromising on the needs of your business.
Track Your Spending
An up-to-date database of all your expenditure will highlight areas where your business can save money. This review is critical to helping your business identify the areas that are eating up your money which could be invested in other important budgets. It is important to remember that whilst little savings in one area may not seem like a big deal, when they are added up with other areas of the business where money is saved, the savings can contribute to a much larger sum.
Our experienced consultants have a wealth of experience in many areas of business costs. We will analyse the aspects of your business costs to identify areas where you are spending too much, and offer reliable and actionable solutions.
Office Supplies
For some aspects of your business, supplies can be easily bought in bulk, where discounts are often applied. Even if you have a mid-sized office, supplies bought directly from the high street or online retailers will cost more than sourcing a trade retailer. Even then, there is the question of which supplier will offer you the best rates to supply your office needs.
Whilst office supplies may be low down on your list of priorities; it is vital that every business looks at this category. Currently, we are able to save our clients an average of 30% on their office supplies alone, which, when considered, adds up to surprising savings.
Marketing Budgets
Perhaps one of the areas where budgets are closely monitored and considered, this budget category has a significant responsibility in generating business for the company. It is, therefore, important that you are getting the most out of your money to see a successful ROI.
Our analysts will help you get more from your marketing budgets, ensuring you achieve better value from the specialist suppliers you choose. Although you will be getting better value for money, our recommendations will not mean you have to compromise on the flexibility, creativity and strategic direction that you want for your company.
Energy Use
An estimated 75% of the electricity used by businesses is utilised by items that are switched off. One way to rectify this issue is to plug your appliances into a power strip that is turned off when it is not in use.
Additionally, one of the most common habits of employees is to leave their computers on overnight, which builds up to needless energy consumption that can increase your energy bill. This could be a huge saving opportunity for many businesses, regardless of their size. Whilst this may seem like a particularly obvious task, the reality is that many in their rush to get home forget to switch off their computers.
Perhaps one of the most common words of advice from successful business leaders is to implement an energy-saving strategy, which will ultimately save you money in the long-run. When you use the business cost consultancy services by Expense Reduction Analysts, you get to utilise the specialist knowledge of our consultants who have extensive experience in the energy market. We will be able to help you identify all the areas of energy usage that will help you to reduce your outgoings without affecting your service levels.
Staff and Payroll
Staffing is one of the most crucial areas of a business; the staff are the ones that make sure every level of your organisation run smoothly and generates money. The problems that many organisations face is how many staff members they need to run their business effectively. It usually comes down to being one of two issues: staff shortages or over-staffing. Many business experts will recommend measuring the traffic to your business to highlight peak times. This can help you see if you are appropriately staffed to meet the demands you are dealing with. With our focus on strategic resourcing and workforce planning, you will be able to make sure you are not overspending in staffing department.
These are just a few areas and tips where your business could save money. If you want to find out more and utilise the right tools and strategy in your budget planning that is customised to your company, get in touch with our experts today. With specialists who deal in a wide variety of business cost areas, we are sure to help you create a plan that saves your business money.