Business owners need to constantly be thinking about the bigger picture. Managing the finances of your company requires being vigilant about maximizing profits and minimizing expenses (ie. business efficiencies). Successful companies often need to focus on both to improve their cash flow.
Best Business Efficiencies Every Company Should Consider
Running an efficient business is not always about focusing on the big things. It is about gathering all of the small details and combining them into a coherent whole. Below are some business efficiencies a company should consider to save money.
1) Purchase Used Office Equipment
When buying equipment for your business, it is important to make the most of your available capital. One way to save money on the items you need is to purchase used and second-hand technology and equipment. And, depending on the item (like refurbished printers for sale), you could save money and get the same functionality that you would with something new.
2) Create an Energy Plan
One great way for businesses to both run more efficiently and save money is to create an energy plan. When running your daily operations, it can be too easy to lose track of the amount of energy you are using. Electricity is a necessary expense, but you shouldn’t sign those checks without a second thought. Figure out how much energy your business uses and find ways to reduce consumption.
3) Don’t Wait to Upgrade Tech
As tedious as it can be to update your systems, newer versions of technology and equipment are created for a reason. They can often help you run your business more efficiently to help reduce costs and save time. Be sure to regularly check to make certain you have updated software, equipment, and hardware.
4) Allow Remote Work
With the increase in the availability of project management and collaboration tools, companies can improve their business efficiencies and save money. This is accomplished by simply allowing their employees to do much of their work from home.
Businesses can save money on:
- equipment, and
The key to this being a successful option relies on business owners being able to monitor the productivity of their employees. There are many tools businesses can use to keep track of their workers’ productivity while they are telecommuting.
5) Go Paperless
Some business owners may think it’s practically impossible to run efficiently without using paper products. But, technology has made it easy for organizations to handle many of their important documents digitally.
Many companies make the mistake of overlooking how much it costs to use the amount of paper they do. On average, a single office worker can use more than 10,000 pieces of paper every year, and this can silently contribute to storage space and a company’s expenses significantly.
6) Incentivize Employees to Improve Efficiency
It can be a difficult task to get employees excited about the efficiency of a business. However, your employees are the ones who are involved in the daily operations of running the business and will be able to see where things can be improved. The easiest way to encourage employees to proactively look for ways to improve business efficiencies is to reward them for their efforts.
- bonuses and
- work parties
…Specifically for those who find ways to improve operations.
Whether you are a new business or your doors have been opened for years, it’s always important to keep a lookout for opportunities to improve business efficiencies and save money. These are crucial for moving your business in the right direction.
Where have you found business efficiencies? Tell us in the comments below!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.