Smart Ways to Cut Costs For Your Business | When you start out with a small business your income is small but so are your expenses. As your business expands and you move into larger quarters and hire more employees, spending can feel like a hydra. You cut back an expense here to realize that you’re hemorrhaging money over there. You want the focus of your business to be on your products and building your customer base, but when you aren’t watching where that money is going, you can undermine your own road to success. Read on to learn about smart and simple ways that your business can cut costs without sacrificing product quality or customer service.
Invest in a Building Management System
Investing in your building infrastructure has upfront costs, but the long-term savings more than balance those costs. Technological advances mean there are several upgrades you can make to an existing property or integrate into a new structure. A building management system, or BMS, can be the key to saving thousands. If you’re wondering, “what is a BMS?”, here’s everything you need to know. Think of a BMS as the souped-up business alternative to the smart home. You’ll use artificial intelligence technology to monitor your building electrical systems including security systems, fire protection, HVAC, lights and general electrical use.
You’ll minimize energy use where it isn’t needed, keep your employees comfortable and cut costs.
Think of offices you’ve worked in where you’re dressed for winter in the middle of summer or have to peel off layer after layer when you come into a subtropical climate in the middle of winter. A BMS system prevents these extremes by responding to and learning from ambient changes created by bodies moving into and out of areas in groups. It also uses monitored points to find power draws on the system and problems that otherwise might go undetected for years.
Invest In Renewable Energy
Another upgrade to your infrastructure that will save you money is moving your operations to renewable energy sources. Companies like Tesla are paving the way for solar, wind and biomass power powering even the most energy-intensive businesses like manufacturing. Solar battery technology is advancing rapidly, meaning you can store the energy you create, using it at night or during storms without reverting to power from the electrical grid. EnergySage suggests that, on average, small businesses can cut their electric bill by 89 percent with solar power.
Combine that with wind or biomass and there’s a potential to go completely off-grid. For businesses in sunny areas like the Southwest, Southeast and Hawaii, solar can provide 100 percent of your energy needs. With tax incentives like credits and accelerated depreciation, companies offset about 60 percent of the cost of the installation.
Encourage Remote Work
Not every business can run without employees available to help customers on-site, but encourage your employees to telecommute wherever you can. Your employees are likely to experience increased job satisfaction which leads to higher productivity. There are real benefits to you, as the employer, as well. You’ll reduce the drain on company resources and you can downsize your office space. Have open office space available when you need telecommuters in the office, but keep things small with only a core crew on-site.
Reevaluate Your Health Insurance
The final cost-saving measure isn’t related to the costs of maintaining an office environment but to the exorbitant costs of healthcare. Attracting great employees requires great benefits, but you don’t have to bleed the company coffers dry to find a plan that employees will love and you can afford. A high-deductible health plan linked to an HSA will maintain their health and reduce costs for generally healthy employees. You can offer other, more traditional, alternatives for employees who have increased medical needs. Having multiple options gives employees choice and cuts your costs.
There are certainly many ways to cut costs, but these steps address three of the top five costs for any business: benefits, utilities and office space. Implementing these changes can cost money up front but will set up your business to run efficiently for years to come.