Increasing sales and boosting income is a fantastic way to maximize profit margins, but it’s also beneficial to consider your outgoings and expenses. If you can supercharge sales while lowering operating costs, this will give you a much healthier balance sheet. Modernizing your company can help you enhance performance levels and reduce expenses. In this guide, we’ll share some effective ways to lower costs by bringing your business up to date.
Explore Workspace Options
The pandemic triggered a monumental shift towards hybrid and remote work. While fewer people work from home now than in 2020, the proportion of employees who work from home part-time or full-time has increased significantly since 2019. Statista data shows that over 50% of US employees now follow a hybrid working model.
If you have remote or hybrid teams, it’s beneficial to review and evaluate your needs when it comes to your business base. If you no longer need a permanent office, or you could downsize due to more employees working from home, you could save money by renting smaller premises or embracing flexible arrangements, such as hiring office spaces on a short-term basis and hot-desking. Day rates may be more expensive in terms of cost per use than longer-term rental options, but they provide greater flexibility and affordability for businesses that don’t need dedicated workspaces. Many modern shared office facilities also provide access to high-tech equipment, newly renovated offices and comfortable, stylish coworking spaces.
Embrace Virtual Communications
Virtual communications played a critical role in enabling businesses to survive and thrive during the pandemic when travel was limited and workplaces were shut. Modern technology replaced face-to-face meetings, with millions of employees taking part in video calls and conferences from the comfort of their homes. Today, businesses across the world are utilizing cutting-edge communications technology to reduce the need to travel, boost efficiency and save time and money. Consider the potential cost savings of hosting a virtual meeting instead of paying to rent a meeting room and cover the cost of transport and accommodation for an employee, a team or a client, for example. If you’re not already using innovative software and Internet-based communications technology, embrace virtual communications. Research investments, seek professional advice and choose software, tools and devices that will help you achieve business goals and lower expenses.
Review Your Staffing Structure
It’s common to think about the conventional 9-5 employee when talking about staffing structures, but there are now several types of contracts and arrangements. More businesses than ever are offering flexible working arrangements, including home-based and hybrid work, part-time hours, casual work and seasonal employment. It’s beneficial to review your staffing structure and see how it aligns with your business goals. If you run a seasonal business, for example, you could save a substantial amount by offering temporary or seasonal contracts during peak periods instead of employing workers on a permanent basis. If you need access to skills or services you don’t have in-house, outsourcing could also be a more cost-effective solution than hiring.
Modernizing your business can help you retain employees and impress customers, but it can also boost profits by reducing expenses. Key areas to focus on include exploring different workspace options, embracing innovative virtual communications and reviewing your staffing structure.
