Whether your business is facing challenges during this tough economy or is doing just fine, the more you can trim off your business expenses, the better off you’ll be. The savings can be used to keep your business afloat, expand into new ventures, or improve your bottom line. Here are 47 cost-cutting strategies for your small company, followed by some interesting facts and statistics regarding expense-reducing methods and their impact on your bottom line and the environment.
The money you’ll save:
When a single computer is left in sleep mode every night and weekend for a year, it costs your business $41 per year to power that unused computer, according to Mark Pierce, a Cornell Cooperative Extension associate in the Department of Design and Environmental Analysis in Cornell’s College of Human Ecology. Compare that with the $57 per year it costs to run the computer on weekdays. If you shut down that same computer, but leave it plugged in, you’ll spend $3 per year powering the monitor’s standby mode when it’s not in use.
If saving $38 per year is not a compelling reason to shut down your computer, multiply that by the number of computers owned by your business, then multiply that number by the number of years you’ll be in business. You’ll find the long-term cost savings justifies the small effort it takes to shut down your computer.
The environmental impact:
Most of the electricity in the U.S. is generated from coal-fueled power plants. The more electricity we use, the more coal needs to be mined. That can strip landscapes of their natural beauty and kill off species that once lived in the mined area. Reducing electricity usage can decrease the amount of coal mined for power and preserve landscapes and ecosystems.
The cost of a kilowatt hour of energy varies by region, so you’ll need to take a look at your electric bill to determine how much money this tip will save you. But here’s an example based on averages.
Let’s use the example of a 60-watt bulb that is typically left on overnight at the office (5 p.m. to 8 a.m.).
One kilowatt hour is the energy it takes to power 1,000 watts for an hour. Find out how many hours it takes for that light bulb to use one kilowatt hour of electricity by dividing 1,000 by 60. It takes about 17 hours.
Let’s say the electric company charges $0.10 per kilowatt hour, and there are 15 hours of the day when the office is unoccupied. Leaving the light on overnight is using about one kilowatt hour of unnecessary power per day.
Here’s how much you can save per light bulb by turning off the lights overnight Monday through Friday:
Count how many light bulbs are in your office, then multiply that number by each of the numbers above to figure out your individual savings. Also, consider that your light bulbs will last longer, so you can cut the cost of buying replacements.
Earlier, we mentioned the toll mining coal to fuel electrical power plants takes on the environment. By using less electricity, you’re lowering the demand for coal and decreasing the amount of environmental destruction caused by mining.
Also, consider that some light bulbs contain mercury, which is toxic and can damage the environment. By turning off your lights at night, you’ll use fewer light bulbs, and that’s less mercury going into the landfill.
If you’re not currently printing documents on both sides of the paper, you can cut your paper consumption in half by changing your default printer settings to print two-sided documents. Using less paper means less of your budget is devoted to office supplies, and you can use that money to grow your business in other ways.
In addition to the destruction of wildlife habitat caused by deforestation, the paper-making process involves nearly 1,000 different chemicals and uses thousands of kilowatt hours of energy. Cutting your paper consumption (and encouraging others to do so) can eliminate some of the demand that drives environmental damage.
Combine printing on both sides of the paper with thinking before you print, and you can cut your paper consumption by more than half! Years ago, the digital revolution promised a “paperless office.” But paper consumption actually increased after the advent of email by most estimates. Consider storing your documents digitally rather than keeping paper files, and only print email messages if absolutely necessary.
By printing fewer documents and email messages, you not only save money on paper, but you also buy fewer ink cartridges and less toner and consume less power. The savings can really add up over the course of a year.
We discussed the environmental impact of power and paper consumption already, so let’s take a look at ink cartridges. Made of plastic and heavily packaged in cardboard, these cartridges create a lot of waste that can be recycled. Many manufacturers will take their old ink cartridges back and reuse them to make new ink cartridges. If your local office supply store or ink brand accepts used cartridges, never throw them away. Plastic takes a long time to biodegrade in a landfill.
Another common way to help the environment is to add a notice to your email signature asking the recipient not to print your message. By spreading the word, you’re helping the environment even more.
The financial breakdown of how much money you can save through digital faxing is almost identical to printing less. However, digital faxing also saves you the cost of buying, maintaining, and repairing a fax machine. Faxing documents over email lets you use the equipment you already own (a computer with an Internet connection) to send and receive faxes.
Using your email rather than a fax machine is another way to cut your paper consumption. Most digital faxing plans allow you to archive your incoming and outgoing documents, so you never need to print them, and they’re always accessible to you.
Finally, as much as these cost-cutting measures can help, they ultimately won’t be enough if your customers aren’t paying. Our ZenBusiness Money app makes it fast and simple for small business owners to get paid. You can use it to easily send custom invoices, accept credit card and bank transfer payments, and manage your clients from an easy-to-use dashboard.
Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Related Articles
Cost-Cutting Ways for Your Business to Survive and Thrive
by Team ZenBusiness, on July 26, 2024
Top Ten Frugal Ways to Market Your Small Business
by Team ZenBusiness, on July 31, 2024
30 Tips for Keeping Meeting Expenses to a Minimum
by Team ZenBusiness, on August 26, 2024
5 Ways Entrepreneurs Can Save Money Right Now
Team ZenBusiness, on August 29, 2024
5 Ways To Break Your Small Business Out Of A Rut
by Team ZenBusiness, on October 28, 2024
Cost-Cutting Tips for Small Companies
Start Your LLC Today