Balancing the books in business is not always an easy task. Many owners and CEOs know that even the smallest saving can help you get from the red into black. Make sure you are not wasting money by reading the tips below.
Manufacturing base
For companies making physical products, consider moving your manufacturing base to a cheaper location. Many companies have done this with success, but it is a major overhaul. Remember you will need to consider site, labour, and transportation costs. Don’t forget labour and production laws may also be different abroad. There also maybe a language barrier or an issue with working in a different time zone. Make sure you throughly cost of all these elements before making the move. Suitable location for manufacturing base moves include China, Vietnam and India. Mexico is now also becoming a popular choice.
Fuel
Next, if your business involves the use of plant or transportation, then fuel costs are likely to be a key cost. A way to save money here is to use Red Diesel, where appropriate. Red Diesel or Gas Oil can be used to run mowers and other plant equipment, but not vehicles that are used on the road like lorries. Red Diesel is cheaper than White Diesel, as it is taxed less and so should be used where possible to save money on fuel costs.
Harness The Power Of Testimonials And Reviews
A way of securing more business that does not incur the costs of advertising is to use the power of testimonial and reviews. If a customer is pleased with the service you’ve provided, ask them for a short testimonial, you could even ring them and get it over the phone. Then use this on your website as proof of the quality of the service or product you provide.
The same goes for online reviews. For many industries such as hotels, restaurants and event venues, there are online review sites. Being a member of these sites is advantageous, as potential customers can be influenced by these reviews. Also, if customers have any complaints, you can address them in a professional manner and improve your business in the process.
Remote working
You can also save money on office overheads by getting your team to work remotely. This is a lot easier for those offering services, sales or administration. Direct manufacturing employee cannot operate from home for obvious reasons.
Working from home saves money as staff often use their own computer and phone equipment. Its also negates the need for an office space, heat, light and all the other bills relevant to running a workplace. It works well in conjunction with a paperless office, saving, even more, money. No more filing and photocopying!
Remember that you will need to have an efficient electronic document storage system in place. Employees will need to be trained on how to save and retrieve the documents when needed. Bare in mind too that you can improve employee satisfaction and productivity when moving to a remote work situation.
