Business operations typically slow down during the colder months. Even if your small business is not necessarily seasonal, there are seasonal risks that every business owner faces. Many people change their consumer habits in winter, so it’s difficult to maintain and expand your customer base during this time. Although some businesses thrive during the winter holidays, this period is always followed by a steep decline in revenue. Yet, business costs remain the same in winter.
How to make sure your small business stays afloat even in times of low activity? Here are three important ways to cut costs in winter.
1. Examine Your Contracts
Take the time to look at your business purchases and try to shop around for better deals. Perhaps other suppliers can provide more competitive prices for similar service quality. Many business owners stick with the same suppliers due to familiarity, not because it makes sense from a financial perspective. So, compare offers. Where prices are similar, look at service features to find the key differences.
If your business operates in the landscaping, logistics, or construction industry, fuel is a major business expense so finding a supplier with competitive prices is essential. But you also need fast and reliable service. In this case, you have to prioritize suppliers that offer 24/7 nationwide delivery such as Beesley Fuels Birmingham. Any delay in obtaining fuel can cost you money, so pricing is not the only thing to look for when choosing a supplier that can help you cut costs.
2. Implement a Work-from-Home Policy
Although some businesses cannot operate successfully without an office, there are always at least a few job positions in every company that can be done remotely. A work-from-home policy can help you massively reduce utility bills in the office. You’ll pay significantly less for electricity, heating, digital services, and water. You’ll also cut costs with office supplies.
Develop a work-from-home policy that works well with your business model. You can ask all or only some of your employees to come to the office only for a specific number of days per week. Technology makes this possible in many industries. And studies suggest that remote work is growing in popularity everywhere.
3. Rethink How You Use Space
Most businesses require equipment, tools, and office supplies to operate optimally, so they need to pay for storage space, a large office, or a warehouse. During busy months, things tend to pile up, and maintaining efficient organization in all spaces becomes difficult. But winter is the perfect time to declutter your business spaces and organize all physical assets.
By decluttering, you will make more efficient use of space. Perhaps you’ll be able to fit more supplies or equipment in a smaller space. This will help you reduce your storage costs. Why pay for more cubic footage than you actually need? If you’re renting an office and discover that you have more space than you need, you can easily sublet to another business and split rent.
From a business perspective, winter is not necessarily a time for accelerated growth but rather a time for optimizing your business strategies in preparation for the busy seasons. Use the tips above to cut costs and enter the busy seasons with good cash flow.