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With costs still climbing, it is beneficial to reduce operating costs at your business. With some minor auditing methods and necessary cuts, you can save money to reinvest in yourself. This means an overall better workplace for you and, more importantly, all of your valued employees.
Use Multiple Pay Periods
If you have employees, they are probably your biggest expense. And alongside other outgoing costs, your monthly bills might be huge right now. But you can offset the costs of running a business by staggering outgoings. For example, you can use different pay period types to preserve end-of-month cash flow. This is because some pay periods are more expensive than others. For instance, payroll costs are higher for weekly pay periods than monthly ones.
Offer More Remote Work
Remote work has all but become normal these days. And some businesses are 100% remote. But this may not be possible for you. However, what is possible is cutting the number of employees in the office and allowing more work from home. As a direct result, you can move to smaller premises and therefore pay less rent. Insurance and legal costs will also be lower. If you own your office space, you can rent out the unused space to make some more profit on it.
Reduce Operating Costs with a Smaller Work Week
The research around shrinking to a four-day workweek is encouraging. Studies have found that employees are around 40% more productive with a shorter work period. And you can save around 20% on operational costs. This is because things such as energy, office supplies, and even cleaning services are reduced as well. This will also have the added benefit of contributing to an improved work-life balance for your staff, who can then go on to do the best for your office.
Outsource Some Tasks
You don’t need to do everything in-house at your company. This is why 90% of businesses outsource core tasks. These can include expert jobs such as networking and IT. But also jobs that you don’t specialize in, such as cleaning and site security. Hiring full-time employees to do these jobs would be very expensive. Yet outsourcing services typically offer these at a fraction of the cost. They also usually offer tiered pricing based on your needs and business size.
Improve Business Efficiency
You may not want to hear it, but your business is inefficient. But don’t worry, most businesses are. The key is how you deal with it. One approach is to work through your processes to identify where efficiency can improve. This is because inefficiency leads to high expenses because of outdated processes, poor supply, or even criminal activity like fraud. A self-audit will help highlight and remove errors that could be costing you the money you can’t afford to lose.
You can reinvest in your company when you reduce operating costs. You can stagger pay periods, offer a smaller work week and remote work, and look for inefficient practices at work. Combined, you can use these to make some cost-effective changes that save a pretty penny.