HPTip Of The Week
Know what you can claim on tax and any tax incentives you may be eligible for. — tip by Sophie's Bookkeeping
We deal with a lot of print material. We always consult with clients for the cheapest and sustainable way of printing promotional material. We sometimes outsource international service for cheaper production or for us in instance, we designed all our stationaries beautifully in black and white so it's versatile and can be produced in cost effective way.
Cost savings are usually associated with tangible items. However, it is important to remember that staff time is an expense that can be saved by making their work flow and tasks more efficient.
This can involve reviewing repeatable tasks to see if certain things can be removed or done differently.
Sometimes it may involve purchasing new equipment. This will have a capital expense but over time the savings will cover the initial investment.
Training staff can also yield cost savings in the way of more efficiently working staff.
Cost savings should be looked at long term. Businesses should avoid short term cost savings such as not replacing old equipment, firing staff or replacing stock with low quality equivalents.
- Provide motivation and rewards to staff. A happy worker, works harder not smarter.
- Delegate responsibilities and assess wastage of skills and resources
- Plan short, medium and long term goals, and expenditure to align with the business objectives to limit unrecognised spending
- Change control processes, and review a proof of concept for all technologies
- Consolidation of technology and review intelligence in system interoperability
- Create promotions that only contribute to the organisations objectives
- Purchase in bulk
Work with what you have, use clever improvisation, and invest time (not money) in upgrading your skills and techniques.
Eg. For the photography/graphic design part of our business, we use a second-hand camera and make up for any lack in quality by employing both photography and digital photo manipulation techniques learned by watching youtube clips and mastered though extensive practice.
Instead of buying expensive reflectors, we purchased shiny steering-wheel covers for a few dollars.
We also use second-hand computers and free software.
Find out who your customers are & what they do. Chances are they have a service they can offer you in exchange for your service.
So far our company accountant, lawyer, cleaner, electrician & company car mechanic are are all loyal students of our dance academy, working for very little to no cost. In exchange we often refer their services to our students through our data base & best of all word of mouth.
It works great for all of us and we've made great business partnerships & friendships along the way.
Cost saving tip
We have cut down our "Advertisement & Promotion" cost by having a presence online, through Social Media sites and promoting excellent Customer Service for 'Word of Mouth' Advertisement. We also have started an industry "Latest News" item bulletin on our website. To gather the news & keep updated free-of-cost (since most of this industry news is available only to paid members/ subscribers) many clients log-in into our website very regularly.
We are building a good & loyal client base, which will result in business in the short and long-term.
Use LED or any Energy saving light globes, use smart power adapters were all electronics like TVs, DVD players, set top box's, hard drives and docks and anything else into them, when you turn off say the master unit which would be the TV after a few seconds it turns all off completely, so the 4 to 6 appliances are not on standby using unnecessary electricity, then when you want to turn them all on again you use the remote control to the power adapter outlet to turn them all on again, then if you leave the room for something and do not come back in 30minutes the adapter gives you 3 mins to click any button on any remote to tell the unit you are still using the appliances, if you do not click within the 3 minutes then the adapter will turn all appliances off completely. this will save a lot on your electricity with the prices going up so high.