Smart Savings: How To Cut Costs and Boost Success

Smart Savings: How To Cut Costs and Boost Success

In today’s fast-paced business world, finding ways to reduce expenses while maintaining quality is crucial for long-term success. Cost-cutting strategies can significantly impact your bottom line and allow you to allocate resources more efficiently, ultimately enhancing your business’s success.

Here are some practical and straightforward tips businesses can implement to reduce costs effectively. 

Embrace Technology for Efficient Operations

Investing in the right technology can streamline your business operations and reduce costs in the long run. Look for software and tools that automate repetitive tasks, manage inventory efficiently, and enhance productivity.

Some of our favourite tools include: 

  • Dext for automating accounts payable and saving time with bookkeeping, and it means you don’t have to keep paper.
  • Zapier for integrating software that doesn’t otherwise talk to each other, for example, adding new people to your email list when a lead is generated.  
  • Office suite – we are MS Office users here, but you can achieve the same with Google. Having a calendar that is shareable and accessible from all devices, being able to chat with the team and storing all documents in one place are standard features and big time savers.

Negotiate with Suppliers for Better Deals

Developing solid relationships with your suppliers is crucial. Regularly review your agreements and negotiate for better terms, discounts, or bulk purchase deals. This helps reduce costs and fosters collaborative partnerships that benefit both parties in the long term.

If your suppliers will not come to the party, shop around.  

We recently worked with a client to shop around on a particular subset of their materials, resulting in a 35% saving!  

We also recommend doing a supplier due diligence. If you rely on a particular supplier, you must ensure (as best as possible) that they will be around for the long term.  

Optimise Energy Consumption

Energy bills can be a significant expense for businesses. Implement energy-saving practices such as turning off lights and equipment when not in use, investing in energy-efficient appliances, and considering renewable energy sources. This not only reduces costs but also demonstrates your commitment to sustainability.

Another consideration is the time of day you use appliances. For example, using off-peak times to charge batteries and run machinery. This, however, must be practical and not cause any issues with production or productivity.  

We recommend implementing this in addition to other sustainable initiatives like being a paperless office and recycling where possible.  

Check out one of our early blogs here about why you should care about being a sustainable business.

Review Telco Invoices

Telcos have been notorious for lock-in contracts and constantly changing plan inclusions. Scrutinise your phone and internet bills, ensuring that you are on the best deal for your business needs. Telecom providers regularly update their plans, and by staying vigilant, you can identify opportunities to optimise your services while reducing expenses. 

While negotiating with your provider for better rates might be impossible, explore bundled services and consider alternative providers offering more competitive packages. 

GAP founder Susan has previously worked in the telco industry and can attest that mobile plans (in particular) must be reviewed regularly. Ask yourself, do you really need that data inclusion when you have wifi at work and home? A $10 monthly saving per plan soon adds up! 

Invest in Training and Development for Employees

Investing in the training and development of your existing workforce can lead to increased efficiency and productivity, ultimately reducing costs. Well-trained employees are better equipped to handle tasks with accuracy and speed, minimising errors and the need for rework. This strategy can also contribute to employee satisfaction and retention.

If any of your staff need some extra training with any finance-related tasks, please reach out. We offer personalised and tailored training sessions.

Conduct Regular Financial Audits

Regularly auditing your finances helps identify areas where you can cut costs and improve financial efficiency. Track your expenses, review your budgets, and eliminate unnecessary expenditures. This proactive approach ensures that you stay on top of your financial health and can make informed decisions to enhance your business’s success. 

Adopting smart cost-cutting strategies is essential for success in the business landscape. By embracing some of these tips, your business can thrive and be more financially sustainable. Remember, it’s not about cutting corners, but about making informed decisions that contribute to the long-term success of your business.

Sustainability – why small business should care

Sustainability – why small business should care

22 April is Earth Day.  The official theme for 2022 is “Invest in our Planet”. 

We need to act (boldly), innovate (broadly), and implement (equitably). It’s going to take all of us. All in. Businesses, governments, and citizens — everyone accounted for, and everyone accountable. A partnership for the planet.

earthday.org

I am by far not an expert on this subject however I do believe that 1) it is a collective issue and 2) it can and does impact on small businesses.  Therefore, I have put together some thoughts, ideas, and resources for you to ponder!

Why should small business care?

Sustainable businesses take steps to protect, renew or replace natural resources which can help with serious environmental issues.  But there is more to it than just that: 

Lower costs which increases profitability

There have been numerous studies by the likes of MIT and Harvard which show that sustainably-minded businesses use fewer resources.  Resources have a cost so fewer resources equals less cost. 

Customers care

Customers are becoming savvier and aligning their purchases with their values.  Many large businesses are also enforcing sustainability measures in their supplier contracts

Governments care

You may scoff at that title, however, as with large businesses, some Government agencies and departments are starting to enforce sustainability measures as part of their contracts. 

How much carbon do you even produce?

Until I completed the Carbon Calculator, I had no real idea how much greenhouse gasses I was producing as part of my everyday life.  I mean I recycle cans and bottles, use renewable energy and live a fairly minimalistic lifestyle but the results were somewhat surprising.  I encourage you to use the calculator and get an understanding of how much your small business produces.

What can your small business do?

We are all familiar with the concept of reduce, reuse, recycle.  Most houses across the country have recycle bins, most states now offer a 10c refund per eligible drink container, and we all love a good Op Shop bargain, so what else can we do?  Here are a few other ideas to consider:

  • Go paperless if you haven’t already.  If you are unable to go completely paperless, use recycled ink and paper and print both sides of the paper. 
  • Switch to an energy provider that offers renewable energy sources.
  • Invest in solar for your home and/or business premises, where possible.
  • Use an electricity metre to find out which appliances/tools use the most energy.  Look at using those appliances or recharging tools/batteries when you are not on a peak rate if possible. 
  • Turn appliances off fully (do not leave them on standby) when they are not in use or overnight to reduce your electricity use
  • Recycle your old electronic devices.
  • Use green cleaning products which are not only better for the environment but also for your health.
  • Contribute to the Carbon Offset Program when flying. 
  • Plant a garden. 

Contributing to a Carbon Offset Program when flying is incredibly easy as all it takes is a click of a button. However, did you know that there are a number of carbon offset programs in Australia that you can contribute to at any time? These will reduce your carbon footprint, or potentially even make it a positive footprint. When looking at these programs check to see if they are a deductible gift recipient (DGR) so you can also claim a tax deduction for your contribution.

Sustainability is fast becoming an issue for not only large businesses but also small ones.  There is a case for investing in sustainable business practices.  I believe that it will become more important for customers, staff and investors alike so why not jump on the front foot now and get ahead of the game?  At worst you only make a positive impact on the environment!

Happy Earth Day!! 🌏