As a business director or owner, the first thing that comes to mind when setting up rules to follow to keep costs manageable is always in terms of what employees are doing. However, did you ever stop to think that your decisions often cost the company more than those little things employees do to drive costs up? The following top 4 ‘do-follow’ rules for cutting costs at the office only list one that is relevant to employees, and that is way down the list! The top three are things you should be thinking of as a director/owner. Follow these rules and you will be surprised just how much money you can save your organisation.
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1) Update Outmoded Company Policy
Newer business models call for alternative work solutions. Many companies have allowed their office workers to work part of the time from a home office. This not only cuts down on the amount of space required on those days, but also significantly reduces the amount of electricity being utilised. In fact, some larger corporations have tied their ‘home workers’ into their mainframe so they can work from home full time. This benefits both the company and the employee who can take tax incentives for expenditures in ‘the line of duty.’ In the UK, they have even legislated ‘flexible working’ options that allow for some employees to work from home.
2) Downsize Offices
One of the major costs involved in some business enterprises is the cost of operating an office that no longer needs all that space. Many businesses have a majority of their office space open and just consuming utilities. As mentioned above, if you have gone to alternative modes of working, you simply don’t need all that space. It may even be in your company’s best interest to rent a smaller office space set up in commercial buildings for just such a case. A good example is what they are doing in Dubai. A great number of local businesses find it more cost effective to rent from a serviced office space provider in Abu Dhabi rather than trying to keep up the operating costs at an office that just eats up a high operating budget.
3) Go Paperless
The initial cost in going paperless may seem a bit extreme, especially when there is a need to buy digital hardware and software that allow for electronic signatures. However, that cost is more than justified when you consider the amount of paper used in the course of a year. Not only is it necessary to purchase the paper, but think of all the filing space needed to keep records and permanent documents! Go paperless, go electronic, and you can save a huge amount of money. It is also a more eco-friendly way to operate.
4) Cut Electricity Expenditures
Of all the top 4 ‘do-follow’ rules for cutting cost, this is the only one where an employee really factors into the equation. It is essential to understand just how much electricity you are drawing even after you’ve turned off the lights and locked the doors for the evening. Did you know that any electronic equipment still draws current even after it has been turned off if it isn’t unplugged? Your computer mainframe would need to stay on and of course your telephone system, but any computer or piece of office equipment that isn’t in use should be unplugged. When leaving the office, have your staff unplug everything from the coffee machine to the AV monitors. At the end of the year you will be amazed at how much this year’s bill was cheaper than last year’s tally.
You may want to blame your employees for waste and high operating costs, but in the end, it is up to you as the boss to understand where the largest amount of waste is occurring. Each and every one of these tips, when taken alone adds up to a considerable savings, but when combined, you will notice a huge increase in your bottom line – and that’s what business is all about.