Times are tough and business is difficult to come by. Liquidations, insolvencies and business rescues are on the increase. To survive the economic slump, it’s essential to implement cost-saving measures sooner rather than later.
We’ve compiled a number of ways that small to medium enterprises can conserve cash and so boost their profitability.
Slash electricity consumption
South Africa’s electricity tariffs are continuing to rise. In 2014, business owners can anticipate yet another increase of around 8%.
Easy ways to slash electricity usage include investing in energy efficient appliances, such as laptops over desktops; opting for solar-powered geysers and lighting; and applying UV protective coating to the windows to retain heat.
Outsource wherever possible
By outsourcing tasks to freelance workers who operate offsite, you save not only on wages, but on office rental too. Freelance rates are usually quoted on an hourly or “pay as you go” basis, meaning you only have to pay for completed work – and not for all the hours that permanent staff members sit around doing nothing much at all.
Consider smart office solutions
Instead of splashing out on large, costly premises with expensive furniture and installation of an IT network, why not consider a smart office solution?
Affordable Flexi Offices, located close to business hubs and industrial zones, are the hot new trend. Adaptable short-term arrangements, immediate occupation and the ability to size up or down according to business performance are among the benefits.
XtraSpace operates a number of Flexi Offices branches in Cape Town and Johannesburg. Flexible agreements, secure parking and business centres are part of the package, making this approach to office space exceptionally affordable.
Opt for affordable, open-source software
Business software can come with a hefty price tag. You can save a small fortune by using free or very inexpensive open-source software, which is available for download on the internet. South Africa’s home-grown Ubuntu operating system is one example. It comes with a full office suite, supports Windows file formats and is completely free.
You can reign in the costs of your business communications by using smartphones rather than landlines. Using smartphones, you can send and receive e-mail, browse the Web, and access a wide range of free apps, such as Skype, WhatsApp and WeChat. Increasing numbers of business apps are available for boosting productivity and simplifying real-time communications, intra-city travel and business networking.
Cash in on underutilised space
Underutilised office space is a waste of money. Instead of cluttering up unnecessary space with business files, documents and excess stock, store the items offsite and sub-let the extra space to generate funds. XtraSpace business storage is the ideal solution for small, medium or large loads that require affordable storage over the long term.