Making a profit as a small business involves more than making sales. It involves careful planning and being mindful of your business expenses and operating costs. By reducing your business outgoings, you will start to see an increase in your savings account, boosting your overall profit margin.
In our guide we share some of the easiest tips on how you can start boosting your profit margin and reducing operating costs.
Hire remote workers
One area of your business where you can instantly start saving some dollars is the hiring remote staff. With more workplaces now embracing the freedoms of the work-from-home set up, there are countless programs and apps to help make managing remote staff a breeze.
The beauty of being able to operate a remote team means that you can expand your workforce without needing to move to a bigger workspace. This helps reduce costs that come with a bigger workspace like increased rent and utilities.
For those staff members that want to work within a traditional workspace, there are many options offered like shared office spaces available in different locations.
Buy in bulk
A quick way to start paying less for your supplies is by buying them in bulk. But before you make this decision there are a couple of things to keep in mind.
Firstly, you want to make sure that you have enough space available to store your extra supplies. The last thing you want to be doing is looking for another space to rent to store your stock and upping your operational costs.
Secondly, do a test order first before committing to purchasing a large amount of the stock. You won’t want to be stuck with a bulk of supplies that are of poor quality and not meeting your standards.
Spring clean your expenses
Spend some time delving into all the areas in which your business spends money. Start by making a list of all the operating costs and then start breaking it down. When you see all the details in one place you might start to see things that your business is wasting money on and no longer needs. These might be expenses like paying for an unused landline for example.
You might be surprised by how much these monthly expenses can quickly add up to, making it the perfect time to start saving your hard-earned dollars. Focus on what you need and get rid of anything that you no longer use.
Review your online subscriptions and services
Chances are that your business relies on some sort of online tool or service to help manage and increase productivity. Subscribing to different apps and programs though can quickly add up, especially when you need to purchase plug-ins and upgrades to really receive the full benefit of the service,
This is another area of your business where you should regularly audit what online tools and services you are actually using. If you find you are paying for certain features and not using them maybe consider downgrading your type of subscription.
If you do a bit of research you might even be able to find free versions of the service, saving you even more money in the long run.
Get a virtual assistant
Virtual assistants can help manage many areas of your business that you don’t have the time to take care of. These can be vital areas of your business that with a little focus can help drive sales, traffic and ultimately business profits.
Virtual assistants can remotely look after things like your website and customer relationship management tools. They are an affordable option too as they can be hired as freelancers, and paid by the hour instead of full–time salaries and benefits.
Say goodbye to paper
Going paperless is a great way to cut down on a chunk of business operational expenses while also benefiting the environment. If you need a few ideas on how you can start shifting to a paperless business here are some tips:
- Don’t print off presentations and documents. Have them stored and sent online
- Opt for paperless versions of your bills and statements
- In meetings use white boards instead of sheets of paper for brainstorming. You can then take a photo of the boards and send these digitally
Negotiate a better deal
Sitting down and reviewing things like your supplier costs may identify some opportunities to save more on your business operating costs. There’s a good chance that you could save some dollars by negotiating a better deal. Make sure you are realistic when discussing deals with your current provider and don’t be afraid to look at new provider options too.
One operational cost that you can also save on is your business insurance. At BizCover we offer an effortless platform where you can jump online, compare quotes for all your business insurance needs like Public Liability, Professional Indemnity and Business Insurance*.
We do the shopping around for you, saving you precious time and money by providing quotes from some of New Zealand’s leading insurers.
Once you select your insurance coverage options, we deliver all your docs including your certificate of insurance straight to your inbox, no paperwork or messy forms required. Get a quote today and see how much you could be save on your policy.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.