Running your business in the most efficient way possible to cut costs
has never been more important thanks to the current economic climate.
This is especially crucial for small organisations that usually have
tighter margins and less bargaining power than larger companies.
1. Move to the cloud
The advent of cloud computing is perhaps the most significant
technological development affecting small businesses today. Running
applications from and storing files on a virtual drive hosted on the web
does away with the need for bulky, expensive servers and other IT
equipment, as well as things like filing cabinets if you combine the
cloud with a shift towards paperless working.
One of the great things about cloud computing is that it has become an
extremely competitive marketplace, with providers jostling with each
other to provide the most cost-effective service to businesses. So, you
can really take advantage of this by shopping around to find the
best-priced cloud solution to make your cash go as far as possible.
2. Automate processes
This is one aspect of efficiency that some business owners shy away
from, due to a perceived high cost and the possibility that it may
result in job losses. However, automating key processes such as
manufacturing and labelling can really go a long way towards saving you
both time and money, and can mean you get the initial outlay back many
times over.
You needn’t think this has to be a large undertaking, either. Start by
making simple changes such as moving from bottling toiletries or drinks
by hand to using an electronic bottle-filling machine, and see how much
of a difference this makes. If you’re happy with the results, you can
go further and automate some of your business’s other operations.
3. Invest in staff training
Again, this might seem counterintuitive; how can you save money by
spending cash on training staff? However, as with automating your
manufacturing, the initial cost can seem like small fry compared with
the benefits your company will enjoy by retaining highly-skilled workers
who are happy in their jobs and feel like a valued part of the
organisation, rather than having to fork out large sums to hire new
staff when dissatisfied employees who think they’re not seeing enough
professional development leave.
Don’t forget that the training can be as targeted as you’d like it to
be to increase the advantages further. A session offering advice on time
management, for example, can boost efficiency in several ways if
attendees take something away from it and put what they’ve learned into
practice.
4. Go green
Becoming more efficient in how you use energy will have benefits for
both your business and the environment. From simple steps like recycling
more and using energy-saving bulbs in your office to more complex tasks
such as replacing windows and installing motion-sensitive lighting,
there are many things small firms can do to save money in this respect.
To make this point clearer, research suggests that the average energy
bill for businesses comes to more than ￡2,600 a year. With prices
continuing to rise by as much as 15 per cent on an annual basis, it’s in
your best interests to slash this cost wherever you can to avoid being
among the seven per cent of small firms that are at risk of collapsing
if gas and electricity become even more expensive.
