With the cost of everything always on the rise, SMEs are hard-pressed to keep operating costs low enough to realise an adequate profit margin. Being able to stay in business is dependent upon keeping your bottom line in the positive, which means that you need to spend less than you bring in. Simple, but true. So how can today’s SMEs survive in a world where the cost of everything from energy to labour continues to climb whilst customers are always looking for a reduction in pricing? Here are a few suggestions that just might help.
Managed IT Services
There is no doubt about the fact that most, if not all, 21st century businesses couldn’t survive without information technology in some form or another. From online transactions to correspondence and data management, IT is a must in every business no matter how large or small. Unfortunately, this may pose a problem for the average SME as there often isn’t a budget for full-time IT staff within the company. Managed IT services such as those offered by the UK company Mtservices.co.uk can provide expert solutions without the need to increase payroll budgets. Managed IT services offer everything from company mainframe development to troubleshooting and support at costs much lower than employing extra personnel.
Automated Processes
Whether in the front office or on the production line, automated processes help to reduce costs in payroll as well. One good example of an automated process would be HR cloud-based software that can be accessed by the HR staff and management from any location and on some levels by company personnel to check schedules and attend online training from home as well as from work. Automated processes on the production line can not only save in manpower hours but can actually improve overall quality control by a large degree. When production is precisely controlled by technology, there is little room for human error, thus reducing financial loss.
Energy Efficient ‘Green’ Technology
Finally, there is no doubt about the fact that as technology advances, the need for huge amounts of energy is reduced. Many of today’s hi-tech machinery and office equipment operates on much less the power than older technology that ran hot and ate up electric like a kid in a candy store. By investing a little up-front to upgrade to the latest technology, you could be saving a small fortune in capital outlay. From LED lighting to cooler and more efficient computerised equipment, the amount of money to be saved is immense.
There is no doubt that every SME could stand to reduce operating costs in some way, shape or form so finding the right solutions for your company is of vital importance. Making a profit is what keeps you in business but it is hard to realise a profit if you are spending too much on the cost of running your company. These top three ways to keep operational costs low should make a huge dent in the amount of money you are spending, increase productivity and increase your bottom line all at the same time. Spend less and make more – the golden rule of profitable business ventures.
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
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