Working with the threat of COVID in 2020, many small businesses are struggling to keep their head above water. To survive, smart financial measures need to be taken. Here is a guide as to how small businesses can cut costs in 2020.
Using cloud networks and scanning necessary documents into cloud systems reduces the amount of paper waste a business produces. The reduction in paper means less need for filing and physical storage space on your premises so you could move to a smaller building to save money. You can half the amount of paper you use by printing on both sides of the sheet.
Reduce Utility Costs
The simple act of turning equipment such as printers and computers off at the end of each day can save your company a significant amount of money.
Change light fittings to energy-efficient rated fixtures with LED bulbs, which can last up to 20 years. Turn off lights at the end of the day and the heating. During work hours, make sure the heating is at a comfortable level and not too hot, causing your staff to become sleepy. On hot days, open windows rather than running the air conditioning system.
Staff are your most valuable asset, but if they are not contributing to your business’s success, it might be time to have a restructure. Overstaffing can be a drain on finances; there is no point in having two people doing a job, which can easily be done by one.
Consider employing people who are less experienced but dedicated and keen to learn. You can pay them a smaller wage than you would a more experienced person. If you find that you have no choice but to cut down staff, offer valuable staff members the chance to go down to part-time hours rather than lose them altogether.
Instead of having extra administrative staff to do duties such as payroll, find a computer program that will enable you to do this task yourself and for free. There are a number of software packages such as OnPay and Intuit Quickbooks Payroll, which will help you get to grips with the UK payroll process.
Allowing staff to work from home will cut down on company expenses because they are using their own utilities and equipment. Fewer people in the building means that your premises can be smaller and therefore you will have cheaper overheads.
It has been reported that working from home can increase productivity as workers are not stressed from the daily commute or office politics. There are also fewer distractions, and people are happier and more relaxed in their own home. Being happy and healthy reduces the rate of sickness absences, which is an enormous money saver for a business.
If you have a cloud network in place, there really is no need for some employees to be in the office all of the time. Technological advancements allow for video conference calls, screen sharing, and intermingling between employees efficiently.