When it comes to operating a business, it’s all about maintaining positive cash flow. After all, it doesn’t matter how many contracts you sign and how many profits you book, if you can’t stay afloat throughout the year then all of your contracts and forecast profits mean nothing.
For this reason, it’s important for all business owners to not only keep track of the ongoing overhead expenses but constantly be looking for ways to minimize them. To help you in this regard, below are three great effective ways which you can do just that.
Your office supply budget is likely to be the most bloated of all of your corporate budgets. Not because your office needs the stationery, but because their budgets are largely left unused.
If you were to take a look through your office stationery expenses then you will likely see a trend of employees purchasing unique and individual stationery items, such as pens with special grips or pens which can write upside down. Other items such as colored post-it notes or brand names folders are also likely to litter your monthly order list.
While it’s important for your staff to be comfortable and have what they need to do their job, it is unlikely that they need lavish stationery items.
Speak with your supplier about switching all of your products to their brand. Stationery supply companies all have their own generic brand which is likely to offer you significant cost savings as long as you are happy to switch to more basic products, such as regular pens which only write the regular way-up!
When it comes to staff retention, companies who are not able to offer large salaries often rely on smaller gifts and rewards to retain staff. And while this is more cost-effective than simply paying more, there is a way to further reduce this expense
When purchasing rewards and incentives for your staff, utilize sites like the Groupon Coupons page for Jos A Bank, where you can pick up a stylish business tie or cufflinks for staff incentives. Whatever incentives you are using to retain your quality staff, consider looking for cheaper options before paying full price.
Despite what each of your staff will tell you, they don’t need their own company car just to get to work and back home each day, with the occasional monthly offsite meeting.
Switching to ride-sharing services like Uber and Lyft for your staff can be a great way to not only reduce your leasing fees but the monthly expenses which your staff claim for fuel and travel. In addition, ridesharing services allow for your employees to work during their travel time, increasing their productivity.
Improving your cash flow isn’t an impossible task, you just need to know where to look in your budget and not be afraid to make cuts where they are needed. In addition to the items mentioned above, take a look through each of the line items on your office budget and query each of them with your business manager with the view to reducing each one that you find. Completing this task every six months is a great way to keep your operational costs consistently low.