If you’ve exhausted your current growth options, then increasing your profit means you’ve got pretty much one option only, and that is to spend less on outgoings.
There are a great many ways to save money, but we’re going to take a look at three of them here. None are drastic changes like redundancies, and should be easily implemented by businesses of most size and type.
If you haven’t already taken steps to make your business more environmentally friendly, then you really should start thinking about it. Aside from it being the ethical thing to do, there’s actually quite a lot of money to be saved by switching to greener options.
In your office, warehouse, shop, or wherever else you conduct your operations, you’ll be spending quite a bit on energy use, and this is something that pretty much anyone can cut down on. Consider fitting automatic lights so that they always switch off when they aren’t needed for instance. Heating can often be an even bigger cost, but if you look to improve your windows and insulate walls it won’t cost so much. If you’re renting your workspace, then have a discussion with the landlord.
There are many other areas in which you can save by going green. You could offer more economical and tax free company cars, encourage conferencing rather than travel, and more.
Time is money, and time is generally taken up by a variety of processes that ensure the smooth running of your business. The problem is that bureaucracy builds up rapidly and easily, which means that your employees can be spending more time on processes unnecessarily.
If you’re serious about simplifying things, then you will need to put some work in, but it’s not massively complicated. The best thing that you can do is actually talk to the employees involved. Is there something that they’ve spotted that you haven’t? Remember that just a small speed-up in the daily work of an employee will soon add up over the year. They can then spend more time elsewhere, and you might not need to hire more staff where you thought you might have.
Cut down on unnecessary expenditure
All businesses are paying for things that they don’t actually need, or don’t really offer any significant value. These are things that you should be looking to cut if you want to save money. Sometimes the task will be easy, and you’ll spot immediate problems, and other times you might simply need to spend a good amount of time with your accountant going through all of your expenditures.
Some of the things you might be wasting money on could include excessive quantities of stationery, subscriptions and software licences that you don’t actually use, retainers with other businesses that you struggle to find a use for, and much more. Find them, evaluate them, and then cut them down if you don’t need them.
If you set up an offshore company on the Isle of Man you can further save money on taxes. On the Isle of Man your business is not taxed on profits and is an excellent way to maintain an investment portfolio.