Could it have been just a decade ago when the bottom fell out of most major economies around the globe? The importance of this in business trends is greater than most people believe and why there has been such a tidal wave of new home-based businesses starting up each and every year. A pattern of downsizing began out of necessity and with so many workers out of jobs and no prospects of finding another one anytime soon, a huge number of professionals began working from their homes on a contractual basis.
Today, home-based small businesses are responsible for a large part of national economies, but this leaves those entrepreneurs with the sole responsibility of keeping costs low and profits high. If you are seeking cost effective solutions for your home-based business, here are a few tips that can significantly raise your profitability.
Outsourcing vs In-house Production
Many home-based businesses start out as one man or woman doing everything from marketing to production and sales, but over time and with a greater client base, there comes a point when help is needed. Here is where you need to decide whether it is more cost-effective to hire in-house help to work alongside you from your home or outsource jobs when possible. If you take into consideration the additional taxes and insurance cover you’ll pay to hire in-house staff, outsourcing may be your better option.
However, don’t let quality suffer in hopes of cutting costs. You’ll be cutting more than costs. You just might be cutting your loyal customer base in the process. Is it better to maintain a solid customer base or save a few dollars here and there? Only you can decide this.
Energy Efficiency Is an Absolute Must
No matter what line of work you are in, you will need lighting throughout the day. This can be one of your biggest expenses if you are not careful. Older incandescent and halogen lamps are energy hogs and so many businesses are finally making the switch to state-of-the art and energy efficient LEDs. If you are looking at energy efficient lighting, it pays to first have an audit, then talk to professionals in the field to see just how you can save money and how much you can expect to save. Often you will find that the cost of converting is more than covered by the reduction in lighting costs throughout the year.
Also, don’t forget to turn off all machinery and equipment when not in use, and this means office equipment as well. Whenever possible, unplug everything as well. Did you know that each plug still has a trickle drain even if not on? Keep lights off in areas you are not using and always opt for energy efficient equipment and appliances as they become available. Not only can you claim these as deductions when it comes tax time, but you will save a huge amount on your energy bills. Remember, you are the boss now, so it’s up to you to find cost-effective solutions for running your business. With this in mind, you can grow your bottom line if you take the time to explore your options.