Your regular office expenses will have a direct impact on your business's profit margin. Therefore, it is vital to constantly look for ways to reduce your regular business expenses. By making a few simple changes, you can cut down these costs, make your business more profitable, and reward your employees accordingly.
How to Reduce Business Expenses
Here are 5 simple ways to reduce office expenses:
- Adopt a Digital Filing System
- Reduce the Cost of Printing
- Switch Off Appliances and Use Cheaper Lighting
- Adopt Efficient Climate Control
- Reduce the Cost of Business Insurance
These tactics will not only help you save money, but also help you save valuable time and resources.
1. Adopt a Digital Filing System
The old habit of making hard copies of virtually all "important" documents and filing them is still prevalent in some companies. But the emergence of cloud-based digital document storage has provided a faster and cheaper backup solution for all your official documents. You no longer have to worry about the effects of a crashed hard drive, careless data handling by an employee, or a computer virus attack. Cloud-based storage is reliable and it can save your company a substantial amount of money every year.
Apart from saving the cost of paper, toner, and energy used to make hard copies, you can also make your business more efficient by giving remote employees and business partners access to data through your cloud-storage provider.
2. Reduce the Cost of Printing
In addition to using a digital cloud-based filing system, you can reduce the total cost of printing any document in your organisation. For instance, you can replace the small printers on individual desks with one central network printer. This printer should be a multi-function copier, scanner and printer with email capabilities.
You will save cost on ink and toner if you can strategically place one of these powerful machines in your office as a replacement for several small printers.
The cost of energy used to power the small printers will also be saved. Furthermore, you should always try to use refill toner and compatible cartridges that reduce the cost of printer consumables.
3. Switch Off Appliances and Use Cheaper Lighting
Switching off office appliances when they are not in use will cut down the cost of electricity in your office. Make sure you and your employees shut off air conditioners, computers, photocopiers, printers and light bulbs when appropriate.
Some organisations have been able to save close to a third of their annual energy bills by doing this. Don't rely on the stand-by modes of these appliances because they still draw an appreciable amount of current. Instead, let your employees put them off and set up a reward system to encourage your employees to develop and maintain energy-efficient work habits.
In addition, you should replace all old long fluorescent tubes and incandescent light bulbs (if you still have them) with compact fluorescent bulbs or the more energy-efficient LED bulbs.
Apart from saving more than one-third of your power consumption daily, the bulbs will last much longer than the older type of bulbs, so you will not need to replace them often. If you have a large office facility, you may also consider installing motion sensor switches on your lighting fixtures to automatically switch them off when no one is present in the room.
4. Adopt Efficient Climate Control
Avoid the constant adjustment of the thermostat by anyone who feels the office is too hot or too cold. But if restricting the adjustment of the thermostat may disrupt the harmony in the office, you should buy an advanced thermostat system.
Some of the newer thermostats now have a feature known as a thermostat lock. This enables employees to adjust the temperature within a fixed range (just a few degrees) so that the energy bills do not escalate.
Additionally, you can invest in a programmable thermostat that will automatically adjust the temperature at night and during weekends. During summer, you can use fans which need less energy to function.
5. Reduce the Cost of Business Insurance
Insurance premiums are part of the recurring expenses that you can reduce to save cost in your business. Although cheap insurance is not usually the best option, there are ways to reduce your risk and subsequently qualify for a lower premium.
For example, you can reduce the risk of theft in your company by installing a reliable security alarm system and ensuring that your business premises is situated in a relatively secure location. The one-time investment in the alarm system could lead to annual savings in the cost of your business insurance.
These five tips will help you to start reducing your office expenses. After reducing the cost of doing business in your organisation, you can use the money saved to give your employees a pay rise, purchase new equipment to improve your customer service, increase your customer base by raising your marketing and advertisement budget, and sponsor community development projects.
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