According to the Small Business Administration (SBA):
- 33% of business fail during their first two years
- 50% fail within five years and
- 66% will have failed within ten years.
Which leads to this question: Why? While many will claim, it is due to lack of sales; I contest it is a balance of increasing revenue and decreasing expenses. Slashing expenses 10-40% can mean all the difference in the world to a business that is currently just getting by or contemplating closing its doors.
Here are 12 ideas to cut costs and save money in the areas of technology, people, office space and utilities.
Cost Cutting Ideas for Your Business
- Move things to the cloud.
Rather than keeping your filing cabinets and buying reams of paper to add to it, take several days or weeks and obtain scanner rentals and shredder rentals to make the paperless process easy and protect the privacy of your employees and clients.
- Replace or eliminate legacy systems.
If your business is still running its day-to-day operations on computer software and/or hardware that is several years old, you are probably spending more on maintaining this system than you will migrating over to a cloud- or server-based app.
- Rent or lease equipment.
If this is the year to replace technology such as printers, copiers, tablets and laptops, check into renting or leasing alternatives. These options will help with improving cash flow and give you the opportunity to stay current with technology.
- Move your ad money into digital.
Rather than spending thousands of dollars per month on TV, radio and/or print advertising, cut all of this out and spend half that amount on Google AdWords and social media advertising including Facebook, LinkedIn, Pinterest and Twitter.
- Implement telecommuting one day per week.
Choose one day per week that everyone can work from home. This will save on time lost during commuting, reduce your utility costs and potentially improve morale and job satisfaction.
- Limit travel expenses.
Instead of signing off on conferences and conventions across the country, restrict educational opportunities to within 150 miles.
- Make your employees and clients brand ambassadors.
Give your employees points for writing and sharing positive social media posts on their personal channels. Once they accumulate x number of points, give them a paid day off from work. Ask your clients to give you social media reviews and provide 10% off on their next order when they do so. Ask them for a referral to receive 5% off on their next order.
- Use freelancers and contractors.
If you want to expand your workforce, instead of hiring employees consider freelancers or temporary contractors. The benefit is you do not have to pay health insurance, workers compensation or track their tax payments.
- Cut down on space.
According to CCIM, around 100 square feet of dedicated office space per worker is what most companies are planning for by next year. So if you have 12 employees, you should be able to get by with 1,200 square footage of office space.
- Buy a programmable thermostat.
According to Nest, a smart thermostat manufacturer, by installing a programmable system a business can save 10-12% on heating and 15% on cooling.
- Look at energy efficient measures.
- Install double-pane windows.
While the capital outlay may be $300-600 per window, the cost savings in energy will more than pay for itself as these windows usually last several years.
- Hang light blocking curtains on the south and west facing windows.
Blackout curtains cost between $20-135 per pair and can minimize heat loss when curtains are closed.
- Caulk and weather-strip seals.
Common heat and cooling losses are around windows and door frames. Use caulking or stripping to slow down or stop losses. Depending on the size of the building, materials cost between $20-30.
- Install double-pane windows.
- Power down everything at the end of the workday.
It turns out that computer equipment is one of the biggest energy sucks in an office. Shut down all computers, copiers, printers, machines, and lighting when leaving for the night. Remember to allow ample time in the morning to power everything up.
Save Money with Hartford Technology Rental
Need to rent technology for your business? Give us a call at 888-520-5667 and one of our experienced account managers can discuss ways on how your business can save money with rental equipment.