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The Cloud has brought down your IT costs but what about your fixed expenses?
Brooke Chaplan discusses 5 ways to reduce your fixed expenditures
As businesses continue to recover from the 2008 recession, many managers are finding creative ways to cut fixed expenditures, to increase profit margins, and increase available funds.
Fixed expenditures, a term used to describe those expenses used by a business that does not change from month-to-month such as utility bills, phone bills, and delivery services, are one of the key parts of an organization’s budget that leading consultants advise companies to reduce.
While changes may seem small in the short term, a year-long gradual cut in needless expenditures can do wonders for a business’ bottom line.
Business storage is one of those necessities that can save companies hundreds of dollars a month, if not thousands if properly analyzed and changed.
Here are just 5 ways to make business storage a point of profit and not a loss at your company…
Discover How Much Space You Really Need
Do you dedicate a certain amount of office or other space to business storage?
It may be more efficient to rent business storage space, rather than use the costly square footage in commercial rental space.
How Are You Storing Materials?
Another consideration when renting square footage is to understand how you’re using vertical height for storage.
For example, a small business storage space with a high ceiling may not only reduce square footage but also cost you a fraction of what you’re paying for space.
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Change Management for Your Organization
I am a recovering change management consultant. Over the last 20 years or so, I’ve focused my career primarily in the people change management space. My job was to help companies realize the ROI of their multi-million dollar investments – whether they be investments in organizational redesign, new systems or large scale business transformations – by mitigating resistance, creating buy-in and driving adoption. The way to do that was to get the people on-board with what was happening. If they stopped resisting what was inevitable and just adopted the change, then all would be right in the “corporate” world. And I use the term “corporate” as a catch-all. These challenges and my project work spanned industries and organizations, from non-profit and government to privately owned and publicly traded enterprises.
The challenge is and always will be people. People will make or break the success of any change a company wants to make. So my job was part data analysis, part coaching, part writing, part training and part shrink. Get into the heads of the people to figure out what they wanted and find a way to make this change something they want. Or better yet – need. Call it marketing. Call it change management. Call it what you want. No matter how you slice and dice it, or whatever you call it, I was doing it wrong. And so are you.
If we apply the “Ask, Listen and Do” mindset to this problem, we as change management professionals can increase our effectiveness while enabling organizations to actually realize the ROI of their big dollar investments.
Let’s look at 2 different change management models to see the difference and similarities: Lewin's Change Management Model and Prosci's ADKAR Model and 3-Phase Process.
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Emulate Skyscrapers: Use Vertical Space in Addition to Horizontal Space
Have you ever noticed how Costco, Ikea, Home Depot, and other companies tend to build extremely tall warehouses?
It’s not a coincidence, and as a result, they keep even the largest plywood and Toronto roofing shingles high above customers’ heads.
Companies such as these are in reality employing enormous total square footage at a fraction of the space by building their own warehouses to specific heights.
Using metal roofing from a metal roof outlet can provide inexpensive cover at a fraction of the price as well.
What Part of Town Are You Storing Your Materials In?
To save money on storage space for a business, try the simple trick of keeping a separate storage facility in a less expensive part of town than your office space.
You don’t want it miles away, but if you’re on the outskirts of a city, you are sure to find cheaper storage space the farther out from your office.
Who Are Your Storage Providers’ Competition?
Just as we might consult two doctors to get a second opinion on a difficult procedure, it always helps to know what else is available as an option.
As in a doctor’s office, the results may be strikingly different and beneficial in a second case.
You may be using storage that is among the most expensive in town and only know it by making calls to rival storage facilities.
The effort might save you large amounts of money by the end of the year.
The Last Word
With the workforce reduction occurring during the next 3 to 5 years, the necessity to streamline all costs, especially fixed expenditures, is becoming a must and a challenge.
The arrival of the cloud has helped much in the computer infrastructure arena, but physical inventory is not cloud material – no matter how you look at it.
Finding the right storage facility for your unused, periodic or seasonal inventory as well as bulk purchases can not only boost your profits, the process may just be the biggest point of savings you make all year.
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Brooke Chaplan is a freelance writer and blogger from New Mexico.
After graduating from the University of New Mexico she moved to Los Lunas where she spends her time reading, writing researching and running.
You can always reach her by email, social media, or by leaving comment below...
Latest posts by Brooke Chaplan (see all)
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- 5 Non-Profits That are Taking the World by Storm - Wed, 6-Apr-2016
- Best Ways to Keep your Company Afloat in a Bad Market - Mon, 18-Jan-2016
- 5 Cost Effective Ways to Increase Company Visibility - Fri, 31-Jan-2014