Running a successful business isn't just about maximising income, it's also about keeping costs to a minimum. In today's economic climate, reducing costs has become more important than ever to businesses who are seeking to maintain profitability.
Office space is often an overlooked area of cost savings opportunity. Here are 5 ways you can cut costs in your office:
Search for a lower cost location: Make sure the rent of premises and land is delivering good value for the money. Many Scotland-based firms are seeking locations that not only offer low rent, but also help save on other business costs that are affected by location. It may also be possible to negotiate a more favourable lease on your current location.
Sublet idle office space: If the business is paying for extra space that is not being utilised, why not rent it some other company who has a need for it? The cost savings of subletting can be substantial. If you own your office space, then renting out a portion is no problem. However, if you have rented the place, then you may have to negotiate with the landlord first to see if he will allow subleasing.
Buy used office equipment: Why pay top prices for desks, chairs or other office equipment, when you can get these items at reduced prices? For example, flea markets and garage sales stock a whole heap of junk, but sometimes they can have useful stuff as well such as file cabinets at unbelievably low prices that could easily be re-used. Watch for business liquidation sales as well, or post a "want to buy" advert on Craigslist.
Encourage staff to take part in cost-saving measures: Ask your employees for ideas and suggestions on how the business can cut costs. Employees are often the best source of creative new cost-savings concepts, since they work on the front lines of the business each day.
Cut down on energy consumption: Energy costs form a significant proportion of the total costs of any office. Reducing energy consumption can result in a big boost to the company's bottom line. There are several ways to do this like slightly raising the thermostat temperature in the summer (or lowering it in the winter). Simply turning off lights in empty areas can cut lighting expenses by about 15%.
No matter how you decide to cut costs, the best way to implement the savings is to achieve the support of the entire staff. Getting the commitment of your employees to act as a team is the best way to ensure that your office cost savings strategies are put to work with energy and dedication. Bring together key members of the firm, investigate the best savings methods for your company, set targets and then constantly monitor performance to ensure that the desired cost savings are achieved
