Budget-saving tips for more cost-efficient work operations

In business, it is important to track what’s being used, including cash, goods and, of course, time.

Keeping up with your day-to-day operations may quite be a handful, but with a few tips, you may just be able to have a more cost-efficient day-to-day operation in your workplace.

We gathered some amazing ideas from entrepreneurs on how they budget their resources, lower their spending, and save money, time, and effort.

Go paperless

The use of less or no paper at work is an earth-friendly initiative and also a great way of saving on costs. Besides, using paper a lot can take up so much space in your office. For Dion Castle, CEO of Struber, their way of doing this is to “make it really hard to print.” He added, “When your team stays digital, you save the planet and save on printing costs at the same time.”

Monitor expenditures

One way to stay on budget is to constantly keep your eye on your spending. Alliance Software Founder and CEO Ben Stickland shared how to do this. “Set a time (for us, it's every 6 months) to review all recurring expenditures and challenge whether you need them or perhaps need them at the level you use them. It only takes 10 mins and saves money on subscriptions that were good ideas but didn't get used,” he remarked.

Gather data and purchase correctly

When purchases are done in bulk and large quantities, keeping track of spending might be challenging. However, with the current technology, it can be done fast, accurately and effectively. “With all our larger commercial solar projects, there are bulk materials to be procured, so purchasing correctly is the key to cost-efficient & profitable operation. Also, utilising streamlined operational systems and apps to efficiently capture details from all parties involved reduces admin hours considerably. This presents a very professional outcome that is appreciated by the end customers,” explained Austin Vaughan, Managing Director at Pacific Solar.

Put systems and have business rhythms

Being cost-efficient is about keeping track of money spent as well as the amount of time spent on the kind of work that has to be done. Putting a system in place and coming up with a regular business rhythm can save a lot of time, effort and resources. This is what Malcolm Bean, Director at Beanmkrgy, and his team have been doing in their organisation. "We come up with simple systems as much as possible and agree on daily or weekly rhythms for meetings and planning wherein we stick to start and finish times. The more we are aligned and adhere to business rhythms, the more we multiply productivity. So, most of our focus is productivity, which is getting more out of each hour as opposed to cost savings,” he stated.

Think of various strategies that may be applied to your business

Look closely at how you do things and get your team to brainstorm and come up with strategies that will help you manage your cost more effectively. Moreover, be sure that these strategies are executed in your business. Rahul Kale, Director at Sunpower Renewables, revealed what they’ve done within their business.

According to Rahul, “We went through an exercise to identify the top 2-3 operational cost drivers and implemented a proper strategy to manage these costs. We also ran an internal competition within the organization and the person with the best idea to save costs over a period was rewarded. This strategy was well communicated and shared within the organization. It is important to get everyone’s buy-in to make this a success. We try to do it as much in-house as possible to save costs, and as of late, the simpler things seem to be helping us save a lot:

• Being more energy-efficient by turning off the computers and lights before we leave;

• Calling our suppliers and asking for discounts if we buy in bulk (important to have good inventory control and line-of-sight on future orders to do this);

• Replacing paper-printing marketing material with digital and online material;

• Utilising technology and VC tools to reduce commuting and travelling costs;

• Doing a barter system with businesses in the area. We specifically worked with a data & AI business that we have helped go energy-efficient, and they returned the benefits via reduced bills as their energy costs have plummeted.”

Automate

Taking advantage of technology and, at the same time, making less use of physical resources is one way of lowering costs. This is why Cameron Bell, CEO at Pyrochar, utilise available software to his business’ advantage.

“I think people really overpay and underuse software. Many businesses (including my own) still rely very heavily on human input for certain tasks and requirements that could become automated with the right level of skill. My secret weapon is Zapier, which is used to automate as many things as possible. While I do currently automate a fair amount, I know I could do it more with greater skill in that area which would allow for: a.) lower staff costs or b.) a reallocation of staff capital to revenue-generating processes that need human input,” he shared.

These are just a few things that you might be able to apply to your own business as well, but there are still more best practices and suggestions out there on how you can manage your resources well. Now, if you have an office budget-saving tip, we would be happy to hear them. Share your tips below in the comment section.

Planning your business budget well

Keeping track of one’s finances is a primary concern of every entrepreneur because cash flow is an integral part of any business. A yearly budget needs to be drawn out to forecast and assess the financial aspect of your business more efficiently.

A budget is your plan interpreted into numbers. It is your roadmap that will guide you as you work on your short-term goals. A budget is a business tool for planning, monitoring and evaluating your venture’s progress based on your projected and actual income and expenses.

Even if you hire bookkeepers, accountants, auditors and experts in this field, it pays a lot if you are also knowledgeable about the financial side of your business. Given that, it is best that you work with your team when you draft your annual budget. To make sure that you plan your venture’s budget well, you can consider these few tips that can help you and your team.

Set targets

It starts with identifying your targets for the year. From there, specify the requirements, materials and tasks involved and estimate the equivalent cost. Having those quantifiable figures will help you assess your progress as you work your way towards your goals.

Research on costs and trends

To make your numbers as accurate as possible, research on actual costs that will reflect on your budget. If you have been operating for quite some time, your previous financial statements could be your reference as a benchmark but consider other factors that may change your current cash flow. Talk to your suppliers and partners, familiarise yourself on tax laws, check the market trends, know the industry standards, and adjust your budget accordingly.

Break down per month

Monitoring your cash flow vis-à-vis your budget is easier if they are broken down into months. When you divide your budget this way, you can check the difference between your forecast and the actual income and expenses as you progress throughout the year. Other businesses also apportion their budget per department or per project.

Get into the details

When you put items or entries in your budget, be as detailed as possible. Make everything quantifiable. Remember that time also has an equivalent cost. Review where you can trim down the budget. Be conservative in your sales projections as you overestimate your possible expenses. Include changes in the business cycle during peak and non-peak seasons. Factor in your company’s capability to absorb the workload and count overhead expenditures.

Come up with contingency

Similar to how you plan your life and your business direction, you must always allocate a contingency fund that will cover emergencies and unforeseen circumstances. Have a plan B, C or D when you create your budget. Mark the items that you can easily adjust and those that are non-negotiable.

Nowadays, there are plenty of tools, templates, apps and software that can make budget planning faster and more efficient. Educate yourself about the financial side of your business by reading accounting books, listening to podcasts and attending learning events, such as those held by EO Melbourne. Once you surpass the hurdle of the first few years of your venture, you can approach budget planning with confidence and increased knowledge.