How to Save and Reduce Your Overheads

  • 01 Jan 2018
  • Posted by admin

Unless you are a non-profit organization, you are in business to make money. However, many are so focused on making the sale; they forget that they can increase their profit margins by introducing small changes that reduces expenditure. Taking steps to save on operational cost is often simple and rewarding, yet so many neglect to make a concerted effort to do it.

Here are some simple ways to save:

  1. Start by making your organization eco-friendly (not just on paper, ensure this in part of your organization’s culture. In your staff manual, recruitment and training constantly remind staff that your organization is eco-friendly. Demonstrate it by minimizing waste, recycling, proper disposal of waste, use liquid soap instead of bar.  
  2. Replace your incandescent vs. fluorescent bulbs with L.E.D.
  3. Turn off light switches in the rest room when exiting (You can post a sign to remind both staff & customers).
  4. Turn tap off properly and when not being used (You would be amazed how much water is wasted).
  5. Consider buying in bulk or teaming up with another organization to take advantage of wholesale prices.
  6. If you can afford to change your regular AC Units to Inverter AC Units or consider going Solar for your energy needs
  7. Study seasons: Be smart and know when to buy. Example; buying school books in late August will certainly cost you more, because more than likely you will be buying from new stock and demand will be higher at the beginning of the school year. Whereas, if you purchase in July at the end of the school year, you will benefit from the lower prices of the previous year’s stock.
  8. Instead of driving to work every day, consider taking a taxi every other day or carpooling where possible.
  9. Entrepreneurs should opt for a post-paid instead of prepaid cell phone plan. It is in most cases less expensive to have a monitored plan vs. buying credit as you go. This often results in overspending.
  10. Have a workplace phone policy in place. Do not allow staff to use the company phone to make personal calls, this will inevitably cause higher telephone bills.
  11. At the beginning of the year make a budget; at the end of the year assess and adjust your spending to facilitate a more effective use of financial resources.
  12. It’s cheaper to maintain an existing customer than to win a new one. That said, always exceed customer expectations, give good customer service and always deliver what you promise when you promised it. Satisfied customers usually guarantee repeat business, and positive testimonials that encourage new business.

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