Running a business is by no means easy. It not only requires hard work and a fair amount of smarts, but it also burns a hole in most entrepreneurs’ pockets. It’s incredibly expensive to keep a business running smoothly. They say for the first three to five years, a business usually loses money as it’s getting its feet off the ground, however, once things are stable, there should be no reason why expenses should run higher than profits. If you find that your expenses are drastically increasing each month, and you feel you have lost all control over this dilemma, perhaps you should consider our smart tips for cutting back on big costs.
Consider utility management services
Utility bills can rake up huge costs – sometimes even going into the millions. There are times, however, that you could have been overcharged. This is a common occurrence with big businesses. The only way you could prove for certain that you have been overcharged, and for you to be reimbursed is if you get a utility management company to inspect the situation and give a report on your usage, in relation to the costs you’re incurring. Even if they find that you are paying the right amount, the utility management company will be able to advise you on how to minimize these expenses, which is incredibly useful in the long run, and could mean saving thousands of rands each month.
Implement sustainable practices
Although it may not seem like implementing sustainable practices will help in reducing big costs, you’ll be pleasantly surprised how it can. Asa big business with hundreds of employees, running an office is incredibly expensive. Think of your high electricity and water bills for example. A solution to this – which will save you big time, is through implementing sustainable practices. This can be done by making employees aware of the carbon footprint, and urging them to save on paper, electricity and water where possible. You could also consider installing energy efficient roofing panels as well as energy saving light bulbs. Water meters will also do the world of good for you and your business as you’ll be able to see how much water you’re using and saving, and by how much you should cut your usage, to reach your target.
Consider a different marketing approach
Marketing is one of the most expensive functions within a big business. Large companies spend almost 20% of their gross revenue on marketing each month. This may not sound like much, but again, when it’s bills that come to millions of rands, it certainly is felt. In this day and age, however, there are various new marketing channels which aren’t half as expensive as traditional marketing techniques. You should consider investigating content marketing, and using social media channels. This has become one of the most effective marketing techniques, and one of the most inexpensive, too.
Review all expenses and cut back where possible
Unfortunately the reviewing of expenses is not always carried out as regularly as it should be – sometimes months pass before expenses are properly investigated. It’s important to review each and every expense; not just the large expenses but the small/minor ones too. It’s likely you’ll find that you have been overspending on unnecessary things. Or, perhaps they were necessary at one time, but are now no longer needed in the business. Expenses such as these can often go unnoticed, meaning you pay for them every month, without realizing it’s a service and expense you no longer need to incur.
Hire smart
Hiring is another fairly costly function in a business, especially if you fail to hire correctly. Hiring the wrong people can mean huge expenses for your company, and it’s likely you have already experienced this dilemma in your business. What you need to do to avoid this issue, is to hire staff that come with fairly good experience in their role (especially if you’re hiring for a senior position), but who aren’t overly expensive. You should also ensure there are probationary periods on all roles to cover yourself as a business should the employee not work out. For junior roles you should be more flexible and hire staff who have a strong educational background (ensure competency is strong), but who don’t necessarily have years of experience. This will help you to save costs as they usually don’t expect high salaries given their lack of experience; as well as give you the opportunity to mold the individual into the perfect fit for the job and your business.
