When it comes to the cost of doing business, every owner will look at ways to cut down the costs. Things like electricity bills, water bills, rent, buying new equipment, office refurbishments, and so many other factors can cut into your quarter to quarter profit margins.
With the economy currently volatile in the wake of the pandemic, finding ingenious ways to cut down on business expenditures can help increase that profit margin buffer. Sometimes it’s the little things that make the biggest difference.
Consider A Different Internet Service Provider
Many businesses use the internet on a fairly regular basis but with limited capacity. If your business is not wholly dependent on the internet to function, then you may want to consider what internet service provider (or ISP) you are with.
While more and more service devices are requiring the internet to function, this doesn’t necessarily mean you need the best of the best in terms of internet connectivity. Taking regular stock of your internet usage and comparing it against your current plan is a good way to identify if you are paying for bandwidth you aren’t using.
Changing internet plans or looking for switch deals may be a good way to cut the cost of doing business either for a few months or permanently.
Make Sure Your Profits Aren’t Draining Away
Similarly, take a look at your water and electricity utility bills. Every business uses both, while some sectors obviously have a tilt towards one or the other in terms of usage.
A digital marketing agency will use drastically different amounts of electricity versus water, and hospitality would more than likely be the opposite.
And so it falls down to the kind of business you are running and what your usage looks like, but considering switching could save you capital that you can reinvest back into your business. Just because you got a great deal when you started, or last assessed usage, doesn’t mean that is the best deal now!
The utility services market is in constant flux with new companies springing up and new tariffs being introduced to meet different usage capacities. It is certainly worth reassessing your utility service providers every year. This moves us nicely into;
Considering Green Energy
If viable for your own circumstances, it may also be worth looking into renewable energy to bolster your electricity supply. This is obviously a very circumstantial option, as a farmstead in the middle of the country will have different options to choose from in comparison with an inner city warehouse.
But that isn’t to say that it isn’t worth looking into. The options for renewable energy sources have expanded since they first became commercially viable as an option.
The most popular option is by far the solar panel, which is universally the easiest option for a lot of properties. Even if you live in a cloudy place in the world, like the North of the UK, UV rays that penetrate the clouds are still valid for solar power – just to a lesser extent.
Other options for more secluded businesses with more space are wind and geothermal options. A more niche form of renewable energy that is possible for coastal cities is wave power options – for places such as the North of Scotland.
And with government incentives being offered to take up renewable energy, the time is now to begin to think about a long term investment.
Don’t Always Buy New Tech Straight Off The Line
This may not be everybody’s cup of tea, but it is most certainly a valid way to save. Highly skilled tech refurb companies are worth their weight in gold to businesses that rely on tech for their daily operations.
Many people are under the assumption that refurbished tech isn’t as good as new, and while this may be true to a certain extent, it is greatly exaggerated the extent to which this is true.
Refurbished tech focuses on replacing the components that are no longer working to full efficiency with new components. This is opposed to building a new bit of hardware with only new components.
The lifespan of refurbed tech can surprise you and if replacing tech seems to be one of the main sources of spending for your company, using refurbs could save you in the long run.
ETB technologies is a wonderful example of a company that sells high-quality refurbed parts, with a price match, competitive delivery, and impressive warranties. They have a great selection of server parts for those faulty data centers that needed a little TLC, among other tech to consider.
Overall, running a business is hard, but saving money shouldn’t be. Taking a good hard look at the money going out, and where it is going out, can be critical to increasing your profit margin.