It can be very tricky for businesses to reduce costs. Yet sometimes, implementing the smallest changes can add up to substantial long-term savings. Here are some innovative ways that businesses cut costs.
Is anyone olive out there?
In 1987, American Airlines determined that if they removed a single olive from all of their in-flight salads, they would make an annual saving of around £30,000 each year. Not only did this mean they no longer had to invest in the olives in the first place, but it also meant that there was less weight on their planes which resulted in a saving for fuel, too.
Don’t be a doormat
Texas-based plant, American Standard, found that they could make major savings by vacuuming their own doormats, rather than getting them sent off to be cleaned professionally. This minor change now saves the company a whopping £55,000 a year.
Get the upper plant
Xerox implemented an ‘Adopt a Plant’ programme in their company, where they encouraged workers to adopt a plant in the office to water and keep alive. This eliminated the need for a professional watering service, saving the company around £150,000 per year.
Feed talent, shun experience
When tech company JumpCrew started up, their strategy was – similarly to many companies – to hire people with the most experience for the roles they were applying for. However, they couldn’t afford to hire many, so they decided to fill the rest of the roles with people who showed clear talent, despite not necessarily having the relevant experience. They found that the employees without experience were quickly outperforming those with experience. Whilst this was initially a means to save on costs, it quickly became JumpCrew’s hiring strategy. Hire people with the right qualities, and train them up.
A number of companies, including Apple Inc and Amazon, hire remote workers in order to save costs and more and more small companies encourage working from home. It’s estimated that if an employee comes off-the-grid for an hour a day, it will save your company £100 per year.
If your employees work 7 hours a day, that’s as much as £700 per year. If you have ten employees, that’s £7000 per year you could be saving.
So what changes can your company make?
As you can see, even the smallest of changes can make a huge difference and sometimes they can be taken without anyone even noticing. If it comes down to watering your own plants or having to lay off an employee, it’s clear which route is more desirable.
One thing you shouldn’t skimp on, though, is your insurance. Whilst it may be more attractive to go for a budget policy, this may not suitably cover your business. At NC Insurance we will work with you to establish the risks to your business, along with your level of affordability. Then we’ll find you the right policy at the right price. Call us today on 0191 482 1219 or visit our website for more info.
For more information on cutting costs within your business, read our blog post: Top tips for improving your cash flow.