After a year of uncertainty, it is
becoming increasingly crucial for businesses to reduce operating costs. Now,
competition amongst companies is heating up and to survive, CEO’s need to
increase that all-important profitability.
Luckily, there are a few steps that
all CEO’s can follow to help achieve this. In this helpful guide, we will
discuss seven areas of operations where you can cut costs. So, your business
can continue to thrive in 2022.
Regardless of the size of your
facilities, energy costs around the country are significantly rising for
everyone. So, both you and your team must understand what you can do to
contribute to lower energy usage. As a CEO, you should ensure that your
facilities are insulated. Not only will this help to keep the cold air out
during the winter months, but it will also make sure that your staff do not
have to rely on their heaters. It can also be wise to switch your appliances to
energy-efficient ones. There are now plenty of options out there, and they
could shave a lot of money off your monthly energy bills.
If your workplace is full of
technology, you should always switch off appliances that are not in use. Most
businesses can leave their devices on standby. However, even on standby, your
appliances are still drawing out energy. You may be surprised to know that
standby use accounts for about
9% to 16% of the average electricity bill.
As well as saving money on your energy
bills, it is crucial that you also try to cut down that monthly water bill.
Small changes in the workplace can make a massive difference. For example, turn
off taps when they are not in use and install a water cistern in the toilets.
This will help to reduce water usage when flushing. It is important that your
staff are educated on what they can do to help. So, it can be good to hold a
meeting regarding energy and water usage now and again to remind staff of what
they can do to help.
Hybrid working is a workplace trend
that has significantly grown in popularity over the past year. This new
environment allows staff to work either in the office or remotely. Although
there are several benefits to this new style of working, it can cost businesses money if
they fail to execute the transition correctly. For example, if you don’t set
expectations of when people should be in the office, then most of your staff
may choose to work remotely for the foreseeable. So, why is this bad? It leaves
you with office facilities that are no longer in use. However, you are still
paying the bill for it each month.
Instead, you must assess the situation
and downsize your facilities if needs be. You could end up saving your company
thousands of pounds. Many companies who have switched to a hybrid working
environment have benefited from lower overhead costs. If your company currently
doesn't adopt this working style, it could be worth doing your research to find
out if it would be the right fit for your company.
Depending on the nature of your
workplace, you may offer your staff a range of different tech to help them
complete their job. For example, your team may be supplied with a computer. It
is important that you shop around for a good deal on these items. Buying in
bulk or second-hand could save you a lot of money. Insurance is also
recommended to cover you if your tech is damaged or stolen.
Mobile phones are another standard
piece of tech supplied by many business owners. You could save yourself a lot
of money by choosing a SIM-only plan compared to a contract. There are several
benefits to choosing this type of plan. Firstly, you don’t need to pay for the
cost of the handset in the price. Secondly, these plans are often 30 days
rolling. So, you can cancel or make amendments to your plan at any time. It is
worth conducting research to determine how much money you could save. There's
this range from Lebara with prices starting as
little as £5 a month.
In order to operate daily, most
businesses need broadband. However, depending on the size of your business,
broadband can end up costing you an eye-watering amount of money each month. Luckily
there is a way around this, and this is by paying for the services that your
company will need. For example, each business will require different broadband
speeds to help them function. If you are a start-up company that require high
speeds to operate, then a café that offers public Wi-Fi could often make do.
This is also another benefit that
hybrid working can offer, as previously mentioned, as staff who work from home
will use their own Wi-Fi. It won't be an expense that your company has to pay
for. If you are not happy with your broadband deal, use comparison sites to
help you search for a cheaper deal elsewhere. There are plenty of providers for
you to choose from. If you feel like you are paying too much for your
broadband, the chances are, that you probably are.
If you are looking to reduce the cost
of your business processes, then it is essential that you familiarise yourself
with automation. Businesses are using this popular technique across the globe, and
the impact that it can have on business growth is substantial. Almost all areas
of business operations can be automated. The process involves introducing
technology into the workplace to minimise the need for human input on specific
tasks. This doesn’t mean your staff are out of a job. Instead, it frees up time
usually spent on mundane tasks like admin work so they can focus their
attention on other areas of the business that need it.
If you are intrigued about how
automation can help your business thrive, it is important that you conduct some
research into the
benefits. Regardless of the size of your
business, anyone can benefit from automation, and it can certainly save you a
lot of time and money further down the line.
It is important to show your staff
just how much you appreciate the hard work that they do. However, it is no
secret that the cost of a company outing can add up. Does this mean that you
should scrap company gatherings altogether? Absolutely not! However, if we
start to think smart about how we plan these events, we could end up saving the
company a lot of money.
For example, not every outing has to
be a dinner at a fancy restaurant. Instead, use the facilities that you have at
hand. Use a meeting room to set up a lunch buffet and provide the food. That
way, you don’t need to pay for a caterer or the cost of a venue. Buffet food is
often inexpensive, and it is a kind gesture to show your staff that you care. There
are plenty of cost-effective
event ideas online for you to explore. Use the
internet to your advantage and seek inspiration.