I n the wake of the recession that hit in 2007, a lot of businesses, both mom and pop ventures as well established names on Wall Street, were hit hard. It’s as if we have gotten used to the excesses of the 1980′s all over again, when greed was good and the cashflow never seemed to stop. With the credit crisis and stock market crash, everything suddenly ground to a halt, and it took three years for the market to recover again.
With that awful memory still fresh on their minds, a lot of business owners are now against wasteful excess when it comes to handling and spending their hard earned revenue. Each and every expense must be planned, itemized, and re-analyzed to see if there’s a way to avoid shelling out cash, in a bid to increase profit and stem the outflow of precious cash.
Like any good entrepreneur, we here at Business Beginners are always on guard against unnecessary business expenses. When possible, we find alternative ways of spending the money, or saving cash on other areas of the business to make up for the cash deduction.
Here are ways you can do the latter strategy, so you have more money in your company coffers.
Packaging
A lot of consumers are now environmentally conscious. This ecological awareness has seeped into all aspects of business: from company processes to the good produced, and even the packaging used. As such, customers no longer care much about flashy packaging materials, if it means they are saving the environment.
Depending on your product, you can consider reducing expenses on packaging by using good old-fashioned recycled paper, or sourcing materials that have been recycled or are biodegradable. This can save you a considerable lot on pricey paper or packaging cartons, as well as printing. For instance, furniture suppliers are now using recycled carton rather than brand new packaging for shipping items. Likewise, a Canada pharmacy is highlighting its use of eco-friendly packaging for its drugs.
Office consumables
Next, there’s the ever necessary office supplies like paper and printer ink. While you cannot get rid of them altogether, there are two ways you can save cost: cut back on their usage, and find the most cost-effective supplier possible.
Let’s tackle the first part. When it comes to using paper, only a small portion of each sheet is ever actually used. As such, encourage re-using scratch paper, especially for everyday stuff like memos and taking minutes during meetings.
For the second part, cost-effective doesn’t have to mean to cheap. It means simply getting the best possible value at the lowest price. If you have a long-time supplier, ask them if you are entitled to a discount. The mere notion of losing you to a competitor after so many years almost always does the trick.
