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.