One of the most important questions all small businesses have when starting is how to make use of existing financial resources effectively. Unless your idea is so unique that a billionaire individual or corporation wants to invest in it, or you are that billionaire, chances are you will want to save money.
With that in mind, let us look at five ways in which new companies can make better use of the money they currently have.
Having a Pantry
For all businesses alike, whether big or small, there are several benefits to having a pantry or small in-house kitchen. First, employees have a place where they can rest, take short breaks during the day, and have lunch or other home-cooked meals. It is not only time-saving as they will not need to go out of the office but also healthier than eating in a restaurant or ordering out.
Second, in case of an emergency, the office has extra space for meetings. It is a useful, cost-savings resource as the business expands.
So invest in a few essential kitchen appliances and set up a pantry in your office. It will both save you money in the long-term and show your staff that you care about their health, nutrition, and well-being.
Having computers is necessary for any firm to conduct its business properly. Still, what many starting companies fail to recognize is that at the beginning, it’s not crucial for the organization to have the latest in both hardware and software capabilities. It’s not necessary to invest a lot of money in machines that will quickly become obsolete.
Instead, a better idea is to have a few adequate-level PCs or laptops and make use of cloud computing solutions in specific cases. Currently, cloud computing is not only about the storage of information. It also includes big data management and virtual machines with customizable computer engines based on your organization’s needs.
For example, if the business requires a computer with a lot of RAM or a large hard drive for a specific project, it can create a temporary system on the cloud, use it, and discard it once there is no longer a need for it.
In most cases, labor diversity means the hiring of individuals regardless of race, gender, religious beliefs, nationality, background, and so on. Here, we are talking about not the employees themselves but rather the type of contracts under which they work.
If you are running a small law firm, having at least two or three full-time lawyers on your payroll would be a good idea. So would hiring an accountant to take care of the company’s finances. Yet, other non-indispensable tasks can be outsourced to agencies and freelance workers.
If one of your clients requires a heavy workload for a specific case, you could use the services of temporary assistants and paralegals. Once the project is done, you could go back to your regular workforce.
Telecommuting and Work Flexibility
There are many benefits to telecommuting. First, employees don’t need to spend either time or money traveling back and forth between their houses and workplaces. For companies that provide transportation allowances, it lets them save large amounts of money.
Also, telecommuting prevents the loss of productivity. This is especially true now, a time in which the covid-19 global pandemic has wreaked havoc in thousands of businesses in all industries across the globe.
As for flexibility, it allows staff to work at those times in which it is most convenient for them. As long as there is a minimum number of hours worked, deadlines are met, and core tasks are finished, there is no reason for an organization not to authorize employees to do it.
One last cost-saving measure all new businesses should look into is going green. It represents a proactive engagement in activities that will protect the environment, generate a low carbon-footprint, and guarantee sustainability.
One example is using a smart thermostat that adapts to different indoor environments. For instance, if there are many people in a meeting, the thermostat will automatically make the room cooler. It will also do the opposite if there are few people inside.
Other examples include using as little paper as possible, adopting natural ventilation systems, implementing alternative sources of energy, and running machines at their lowest capabilities when not in use.
Green companies can also save money on utility bills and get tax breaks and other incentives from local and regional governments.
As we have seen, there are plenty of ways in which small businesses can save money. They include having a pantry, making use of cloud computing services, engaging in diverse labor hiring practices, telecommuting, and environmental protection.
By applying these initiatives, your startup will be able to allocate more financial resources to areas that bring revenue and profit to the company as a whole.