Entrepreneurs Must do all they can to give their businesses the best chance at success. This includes so many large and small details that come together as a successful enterprise. From hiring well to creating a winning business plan.
The entrepreneur must remain diligent to the needs of the business and make sure that the costs related to the business are always kept in check. Here are some specific areas of the business where an entrepreneur should focus to save money and improve the company’s bottom line.
Purchasing a New More Efficient Air Conditioner
One of your company’s primary appliances is your company’s air conditioning unit. This appliance plays a big role in keeping your workers comfortable throughout the day. Studies have shown that if the air temperature is not ideal at your business, worker productivity diminishes considerably. For this reason it is important to make sure that your air conditioner is operating at its highest efficiency. In many cases your air conditioner can no longer operate efficiently and this means that your company is losing money.
Remember your air conditioner is likely your largest line item on your electricity bill every month. You should consider replacing your air conditioner with a newer more efficient one. Whether your company use a ductless or ducted air conditioner, a multi split system, or a reverse cycle air conditioner, a newer unit will deliver better service, higher quality air conditioning and a cost savings of up to 30% off the unit it replaces.
Bringing on Workers as Independent Contractors instead of Employees
The natural inclination for a business in terms of its workers is to hire them as employees and have them come to your place of business during work hours and be under to total direction of your management. This has been the standard way of doing things for a long time and most companies accept and use this worker strategy.
However as businesses now need to focus on being quick at turning a corner, introducing products and services into the marketplace, and moving into new markets, it often makes sense to hire independent contractors or even consultants rather than employees. This group works on a specific project that you outline and they manage their own activities to get it done. You do have some input on how they spend their days but if you hire motivated self-starters you get many benefits from hiring independent contractors.
These benefits include no need to pay for insurance, no need to provide them with office space, an ability to end the relationship with them without any issues and with no lingering costs outside of their contract. You also get workers who are already trained in the area for which they are being hired and who can immediately focus on the tasks you need completed. Hiring independent contractors can be a great way to save your company money. The only downside to this strategy is that you need to have a management team that understands how to manage independent contractors in addition to employees.
Leasing Instead of Owning Office Equipment
The immediate urge for company regarding equipment that they use regularly is the purchase it rather than recent. In many instances this is certainly the proper approach but not in all instances. When you are in the need for specific office equipment you should closely examine the cost of purchasing and maintaining that equipment and compare those cost if you purchase it or lease it. Many office equipment companies today offer aggressive leasing terms that include maintenance and changing the equipment when newer models with important features become available. In addition you can save yourself the upfront cash that you would need to purchase the equipment. If your business does well all the time this will be the best savings of money for your company.