It doesn’t matter how profitable your business is, there are always opportunities to reduce costs and make your operation leaner and meaner. Often the best time to look for ways to save on costs is when your profits are at their zenith. Finding ways to cut costs not only boosts your profits even more, but it also means that the cuts don’t hurt as much either.
Economists often say that technology is the only true free lunch we have. It’s the only thing that really allows us to make extra money, without having to put in extra effort or lay people off. Here’s how to use tech to supercharge your business.
Invest In Green Tech
The benefits of going green are touted every day, but is it all just a political agenda designed to get businesses to increase their costs, or is there an actual business case?
Well, according to Entrepreneur, there is a good case. For one, companies can save millions of dollars every year by investing in eco-friendly technologies, like LED lights. LED lights use around 75 percent less energy which can be enough to cut your office electricity bills in half.
Business can also invest in light-sensitive switches that detect when the lights need to come on and when they should be switched off.
Focus On Depreciation
A significant cost for businesses is depreciation. It’s the slow decay of their investments over the course of their lifetimes. When those investments are machinery and capital equipment, companies need to do everything they can to maximize their lifespan. This could include things like regularly oiling moving parts and making sure that clips and clamps aren’t wearing down hoses.
Put IT Infrastructure In The Cloud
If you wanted a state of the art IT infrastructure ten years ago, you pretty much had to do it all by yourself. There was no cloud, so to speak, and so companies wound up spending a fortune on servers and bespoke applications for their operations.
Now, though, the world has changed. With the advent of the cloud, businesses don’t have to bother with setting up their own IT departments. Instead, they can just outsource all their needs to a third party company.
For many startups, even this isn’t necessary. Often all that is required is a connection to the internet and a subscription to a SaaS provider for critical applications.
Automation is responsible for the vast increases in wealth we have seen since the industrial revolution, and it’s why the types of jobs that are available today have changed dramatically. We no longer see 40 percent of the population in agriculture thanks to the fact that automation has made it possible for just 2 percent of the population to feed everybody else.
Modern businesses in the service sector can take advantage of automation too, especially when it comes to clerical tasks. Don’t bother doing things like accounts using a team of accountants. Instead, use programs like Freshbooks and Xero to do it for you. These can handle things like invoicing, payroll and so on.
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