All businesses have expenses, it is how the business stays open and makes money. As they say, to make money, you have to be willing and ready to spend money; sometimes lots of it before you’ll get any returns. Now, some costs are legitimate.
For instance, your marketing and ad spending are necessary. Your office space rent is justifiable. Payments on your furniture and other accessories are essential. Most times, you can even track some of these expenses. However, there are some entirely unnecessary costs that most small-business owners make. Putting a check to these expenses can translate into significant savings for you.
Some of these expenses include the following:
Paper and Ink
Yes, we get that you need paper for many things in the office. However, the truth is when you consider just how much paper you really need compared to what you use up in the office, you’ll cut your paper expenses by as much as 80%-90%.
A recent study released by the EPA indicated that the average employee uses up to 10,000 sheets of paper per year. Moreover, guess how much of that paper is wasted? Around 80%! So, let’s say you spend about $2,000 a year on paper, the reality is that you could get by with $400 and get $1600 in savings. Go figure.
The same goes for ink and toner for your printer and copier. The point is that going digital might be a better alternative and will translate into better costs. For instance, the amount of money spent on faxes, the machine, and the services alone can be used for better stuff while you opt for an online faxing system or service that requires less than 30% of the traditional fax system. This goes double for when you find an online faxing service through an online comparison site such as Find A Fax.
Excess Supplies
Most small businesses often have to use supplies. When these are scattered all around the office, it can be difficult to keep track of or monitor the inventory. However, if you were to put them all in one centralized location where you can easily keep track of it, you will then be able to buy only what you need as against buying something because you didn’t know it was available in the office in the first place.
Unnecessary Energy Consumption
Even big offices and organizations are learning to power down their systems at the close of work. Let’s be honest, is there any need for putting your machines and appliances on standby?
Unless your machines are running background programs that you need the next morning, your best bet will be to shut down completely at the end of the day. Doing this alone will translate into reduced energy bills. The money saved from paying less on your power usage can always be diverted to other important things.
Bright Energy Consuming Bulbs
Ever heard of energy saver bulbs? If you have not, well now is the right time to make a change. The traditional bulbs are pricier and consume way more energy, more than 90% of which is dissipated as heat, than the newer LED and CFCs.
In fact, it can be argued that if you use many compact fluorescent bulbs for one year, they’ll pay for themselves from the savings you make from your energy bills and then some. Moreover, since they typically last longer than conventional bulbs, it makes sense to invest in them.
When you combine this with turning off the lights every time, you leave one room or during the day you can save hundreds of dollars every year. Sure, not everyone will be on board with turning off the lights. So, get some motion sensor switches installed and watch how the lights go off every time you leave the room and come on when you enter.
The writer, Oscar King, spends much of his time helping his friends with managing their own small businesses and finding ways to squeeze as much efficiency out of their equipment as possible – cutting costs and producing returns where he can. If you wish to learn more about Oscar you can visit on Google+.
Robert Gomboş 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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