By Ryan Velez
It’s a reality that eight out of 10 small businesses fail during the first 18 months, according to Bloomberg. There are many different factors and reasons that lead to this major issue, but one of the most common examples is misdirected attention in the business. For example, many people want to try and raise their profit, which is good, but you may not be looking at ways to cut your expenses at the same time, making your initiatives count for more. Black Enterprise offers some valuable advice.
One thing that is good for you and the world is being more environmentally friendly. Energy can cost a lot of money, but you can make that number less by using programmable thermostats or LED light bulbs. File documents digitally or send messages by email instead of using paper. Use rags to clean up spills instead of paper towels. Buy a refillable water dispenser instead of providing bottled water. These may seem like minor actions, but when a little bit of energy saved can make a big financial difference, you’d be surprised what it can mean.
Expense comes in a variety of ways. For example, the classic expression that time is money. Whether your employees are salaried or hourly, you want to make sure the time that you are paying for is profitable. Chances are that sitting in meetings isn’t the best way to see a return on that investment. Consider sending a group email, or walking to each employee, to get an update on their progress. Cutting expenses can help boost productivity and make what you are paying employees more cost-efficient. This isn’t to say that you can abolish meetings completely. Just think about what needs to be said in person and what can be said through another avenue.
Outsourcing may sound like a dirty word, but in some cases, it can save you money without really compromising on quality. For example, ask yourself if it is cheaper to have notary and signing service outsourced instead of having them done in-house. Going in-house not only means paying a wage, but also paying future expenses for license renewal or continuing education. For example, if you want to set up a website, a freelance web designer may be more affordable than bringing someone on formally.