They say the devil is in the details, and this is very true when it comes to business—especially small business. Little costs add up. If you want to avoid them, you’re going to need to be studious with the books. Know what is necessary for operations, and know how to optimize such that you’re operating at a bare minimum of cost, and a peak of efficiency.
1. Attention to Detail
It may seem a daunting thing to do, but studies show you can motivate yourself on saving money; according to Swoosh.com.au, “The field of neuroscience has helped us advance and understand the true sources of personal motivation and follow-through. In fact, research shows us that we can do just about anything we set our minds to.”
Set your mind to increased profitability, decreased expense, and upward scalable expansion, and you’ll likely experience these benefits. The main difficulty is perseverance. You’ve got to have the will to see through what you’ve begun to do. If you can do that, you’re going to save. Perhaps look at operational expenses that come regularly, as a starting point.
One way to cut down on operational expenses with your small business is to look at your dining choices. Sure, expensive luncheons can be a lucrative opportunity, but at the same time, you’re likely not going to host such events on a daily basis. Unless you’re doing something business-related, you might try to keep lunch under $5 a day. It may not seem like much, but out of 260 working days a year, 250 $5 lunches is $1,250. If you can cut even one dollar off that figure, you’ll save $250.
2. Sustainable Energy
Something else to consider is sustainable energy tech. If you haven’t looked into green solutions, you might want to do that. Things have finally reached a point where the green route can actually save you money in a number of ways. Before, this was just too expensive. Now, it’s somewhat manageable. Let’s crunch some numbers.
The cost of a solar panel averages at about $1/Watt prior installation. A 3.1 kWh system, or $3,100 in solar panels, increases property value between $10k and $20k depending on your location. Batteries, cords, power inverters, surge controllers, and other related accoutrements will make a $3.1 kWh system around $5k.
Adding it to a property you own could increase that property’s value between $10k and $20k for a 200% to 400% ROI. That’s not to mention the tax credit a business gets for green initiatives, or the savings in terms of utility expenses. With solar energy, you may be able to excise your energy utility bill entirely, saving potentially hundreds monthly.
3. Mobile Considerations and the Internet
Another considerable trick for the modern age involves availability. It is increasingly possible to be mobile today—use mobility to your advantage. Do you really need to maintain your office from its central location, or is that location merely a placeholder for operations? If you don’t need to be centrally located, don’t restrict yourself.
A small business of twenty employees could use cloud computing to float DaaS, or Desktop as a Service. This allows for seamless operational interface wherever an internet connection can be found for total mobility. You no longer have to pay equipment expenses using BYOD (Bring Your Own Device). Additionally, you cut down on office rental expenses.
Finally, don’t neglect to use the internet to your advantage. You’re going to find that many advertisement and marketing trends can most successfully be pursued through the internet that provide greater output for diminished financial input. The key to any successful business is getting out more than you put in one way or another.