Spending money is a necessary part of making money. But that doesn’t mean there aren’t ways you can cut costs and improve your margins over the long haul. All too often, businesses are seen as an endless piggy bank, able to absorb whatever financial insults are thrown at them.
But this attitude works against the spirit of business, and how much money you get to take home at the end of the day. Businesses should be lean, efficient and focused on driving costs down as low as possible.
Maintain Your Equipment Sensibly
Unfortunately, depreciation is a fact of life. It’s so inevitable, in fact, that your accountant will automatically include it in your company returns. That said, you do have some control over the rate of depreciation of your equipment.
If you have heavy mobile equipment, like tractors and trucks, make sure that you clean them regularly. One of the things that kills machinery that operates outside is the general dirt and grime that builds up on sensitive moving parts. And these require particular attention.
For instance, ensure that bearings remain properly sealed. And ensure that all moving parts are adequately lubricated to reduce wear. Also, once you’ve cleaned equipment, keep it indoors out of the elements. All too often, tractors and diggers are left out in the open to be ravaged by the weather.
Get In The Professionals
Suppose one of your air-conditioning units has broken down and you need somebody to come and repair it. Many companies will just look for the cheapest quote they can find. But often, this is not optimal in the long term.
Make sure you look for a bona fide commercial AC repair outfit. Often, businesses focused on residential don’t have the same expertise and knowledge as those who focus on business. That means that you’re both less likely to resolve the issue if you go with residential technicians. And you’re likely to have to shell out in the future again regardless.
Work From Home
If you have an office-based business, do you need to pay an expensive rent for an office in today’s digital marketplace?
Many entrepreneurs don’t realise is that in the current connected world, offices are increasingly obsolete. That’s because cloud computing solutions allow people to work collaboratively from disparate locations.
What’s more, we’re now seeing the rise of the virtual office. Businesses can pay other companies to provide office space on an as-needed basis. Suppose you have to meet with a client and don’t want to entertain that client in your home. Just hire out a virtual office, and have access to meeting rooms in which to meet clients at a fraction of the cost of renting an office for exclusive use.
Use Energy Efficient Appliances
Modern appliances are a lot more efficient than they were even a decade ago. Lighting, especially, has become far less of an overhead for many firms. Switching to LED lighting will reduce the cost of lighting in the long run. So too will replacing old processors in your office computers with new, low TDP chips.