5 Ways to save money in a business
Nov 20, 2015
1. Use free software
Product and software licenses can end up costing a company a lot per month or as one off purchases. If there are alternatives that are just as efficient, there’s a lot of benefits to switching to the free or cheaper alternatives.
An example of this would be City of Munich, which made a bold move where almost 15,000 computers using Microsoft Windows switched over Linux. The mayor said that this initial move has saved around €11 million in licensing and hardware costs. He also stated this move can be reversed for 3 million which would include migrating all those PCs to use Windows 7 again.
2. Employee welfare
Many companies forget that the welfare of the employees is highly important because it directly relates to productivity and net profits. By engaging with the employees you stand a better chance of them staying in the company, roughly a 87% higher chance of staying compared to if they were unhappy in their job.
A study of 64 organisations revealed that those companies with highly engaged employees achieve 2x the annual net income of organisations whose employees lag behind on engagement.
3. Outsourcing comparison
If you decide to outsource, there should be a significant amount of analysis done to find out what level of skill you are looking to hire for the specific job at hand. An example of something similar is when deciding what private security to hire for a organisation. Is human security needed or will a simple CCTV network suffice?
If deciding to outsource a product or stock, the same applies, ensure the market comparison is researched to ensure the quality, price and reliability of the provider is suitable for a needs.
4. Going green
Switching to green energy at a company will not only boost a reputation, it will also save massive amounts of money in the long run if done efficiently. A company called Dow Chemicals estimated to have saved an astonishing $9 billion since the 1990s, on just a $2 billion investment at the start.
As a company, you should be constantly evaluating the data and ensure that you are not spending more money than necessary on employees. Cutting down the number of employees you have is risky and it should always be taken into account whether the remaining staff will be able to take on the spread out workload.
Vice versa, if you have too little staff and they aren’t producing what you are expecting due to workload, you should look into hiring new staff to boost productivity and elevate some of the stress off a employees who may feel too pressured and stressed to reach the standards being set.