Minimise Overheads– Part 1: Telephony and UtilitiesOn the most basic level, the key to making profit for any company is to maximise revenue while minimising costs. In order to achieve the highest possible profit, the main thrust of most companies is to push for the highest possible turnover at all costs. Although this is an integral part of increasing profit, it is also absolutely imperative that companies look at the best possible means of lowering their expenditure: a pound saved is an extra pound of profit in just the same way that an extra pound earned is. There are multitudinous ways in which overheads can be reduced and general costs shaved if a little time is assigned to the task. The following are areas that may be worth considering:
TelecommunicationsIt is not only call-centre type offices which rely heavily upon telephony, internet and fax communications: almost all modern offices are to an extent dependent upon telecommunications for the smooth running of the organisation. Since the abandonment of BT’s monopoly over telephone services there are now a multitude of service providers who are in competition with each other, and as such it is possible to get great deals on all of the telecommunication applications that your company needs. Using online comparison tools it is possible to get an overview of the possible savings you could make by switching from one service provider to another. Alternatively, it is often possible to get an impressive discount by discussing migrating all of your services to a current provider: for instance getting a package which includes line rentals, broadband, company mobile phones. Shopping around can reap dividends, as can looking to services such as VOIP which often results in lower call charges by using an online interface as opposed to the phone line directly. Every company has different requirements, so it’s well worth exploring the most affordable means of obtaining the services you require.
Utilities and ServicesAs well as telecommunications, savings can be made on other essential services by shopping around and consulting price comparison sites. Electricity charges for instance can potentially be greatly reduced by considering the costs of competitiors to your current provider. In addition to this, by choosing an ‘online tariff’ and moving away from paper billing, additional savings can be made. Online price snooping can be rolled out across other areas such as insurance, computer equipment purchase and pretty much any other necessary office purchase.
For advice on other areas of potential overhead and cost reduction take a look at the follow-up to this article: Minimise Overheads- Part 2: Office Supplies and Efficiency.
Minimise Overheads- Part 2: Office Supplies and Efficiency.In a previous article the overhead reducing benefits of consideration of telecommunications, utilities and insurance providers were outlined. If your company is looking to reduce outgoings then considering switching respective suppliers is a great way to reduce the dent that overheads make in your profit margin. There are however additional ways in which you can reduce your organisations costs with minimal fuss and no disruption to operations.
Office SuppliesOffice supplies are a stalwart of the business arena and although rarely at the forefront of priorities, the very fact that every office requires
stationary or consumables of some description means that the office equipment industry is in itself absolutely vast. The magnitude of the industry is great news for all companies: as it leads to some serious competition, manifested as price-wars, promotions and fervour to generate and maintain repeat custom. As with most purchases, the internet is a great way to research the most competitive supplier of office equipment and stationery. By browsing online it is possible to find the products you need at the most competitive prices, find the distributor with the most suitable delivery practices for your needs and even read 3rd party reviews and testimonials to gain an overview of their reliability and customer services.
In addition to looking for the best supplier, in order to cut costs on office supplies it is good practice to consider how effectively your organisation orders and uses stationery and associated items. A good starting point is to create an inventory of the supplies your office currently has in stock and to chart which items are consumed most rapidly. Having established the most quickly depleted lines you can look at purchasing these products in bulk and in doing so benefit from economies of scale. At the other end of the scale, this practice allows you to uncover which items are rarely used and as a result should not be repeat purchased regularly.
EfficiencyEfficient use of
office supplies, electricity, water and general consumable items reduces bills whilst also helping those companies who are environmentally conscientious to minimise their carbon footprint. So having taken steps to ensure that all of the services and items needed to run the office are obtained at the lowest price possible, costs can be further reduced by ensuring that waste is kept to a minimum in all respects. From ensuring all electrical devices are turned off as opposed to put on standby when not in use and that waste paper is re-used as opposed to thrown in the bin: ecologically ethical practices not only help to reduce your company’s impact on the environment but also to make sure that your profit margin isn’t negatively impacted.
In summary, the reduction of overheads and general operating costs is a relatively simple procedure which benefits not only the company but potentially the planet in general. The simple steps noted are within the means of any company: large, small or somewhere in between and can be the difference between logging a profit or a loss at the end of the financial year.
Labels: article, costs, guide, office supplies, office supplies manchester, profit, reduce overheads
