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How are those books looking? Reckon they could look a little better?
We think that they could and we know exactly how you can do it. We’re going to break down some simple but often overlooked tricks that will have that bottom line looking more robust going into 2020.
Running your own business can be rewarding and devastating in equal parts. For every moment that you feel like the next Jeff Bezos, you’ve probably got a dozen where you wonder if things are ever going to pan out in your favour. We can’t tell you how to run your business, but we can suggest a few ways to make it a bit more profitable.
1. Figure out Your Industry’s Benchmarks
The first thing to know is if your expenses are normal or not. A little bit of research goes a long way, and will help you figure out if and where there are savings to be had. The good news is that the government has largely taken care of this sort of thing for you.
There are many government agencies who publish exhaustive industry facts and figures, such as the Australian Tax Office and Australian Bureau of Statistics . The ATO even offers a free app you can download that allows you to compare your business’s performance against others operating in the same industry.
2. Get Your Heating Right
We understand that you need to keep your employees comfortable, no one is asking you to store your staff in a freezer or an oven. A simple programmable thermostat can help you minimize your heating bill. What makes a programmable thermostat great is you can customise how it performs throughout the day, for instance turning it on half an hour before the office opens and adjusting it according to the daily weather to ensure you are not overheating your premises unnecessarily
The same rules also apply in summer, when you can program your AC to be a little warmer in the morning when the office is less crowded, then get cooler as the day heats up and the office gets more crowded, before completely switching it off once everyone’s gone back home.
If your office has signs telling everyone to turn their computers off when they leave, you’d be wasting time and money if you weren’t doing the same with your heating.
3. Forget Traditional Advertising
Want to maximise the bang you get for your buck? TV, radio and print ads might not be the best way to go. Besides, it’s 2019, does anyone even watch TV any more? What you want to do is go all-out on social media advertising.
In terms of the cost per 1000 impressions, Facebook advertising has been estimated to be a third as expensive as going the traditional TV route. You could reach the same amount of people for a third of the price, which could significantly slash your advertising expenses.
4. Buy Used Stuff
We’re not suggesting that you purchase threadbare office chairs and appliances so old that they are a health risk , but you can get near new products to furnish your office for a fraction of the cost of brand new ones. All it takes is some Googling. Take advantage of sample sales, ex-showroom stock, and websites such as Gumtree and Ebay.
You can find perfectly fine, slightly used printers, office furniture, and even kitchenware online, immediately, meaning that if you need to revamp your premises in a hurry, you won’t have to worry about your bottom line.
5. Be Savvy about your Utilities
When you take a look at your expenses there’s going to be a few items in there that you can’t cut from your budget, like power, internet, and maybe gas However, what you can do is take advantage of the number of free comparison services available to business owners. There are also trusted government websites that you can take advantage of.
These sites will compare your current business electricity or internet plans, for free, and you can discover cheaper providers and rates for your essential services. These sites then charge your new power company for signing you up. You don’t have to pay a cent, and will get to enjoy cheaper electricity and internet
The Bottom Line
Times can be tough, and they might just get tougher. However tough times call for small business owners to get smart. Making a few easy choices can mean the difference between your business weathering the storm or going under.
“The opinions expressed by BizWitty Contributors are their own, not those of BizCover and should not be relied upon in place of appropriate professional advice. Please read our full disclaimer."
