Cost savings for Small Business
In
these tough economic times, business owners are looking not only to increase revenues, but to cut operating costs as well. On this
page we will discuss areas where the proper use of technology can save you money!Business and Information Technology Alignment
Now more than ever business owners have to understand how IT is integrated into their business processes, and then how to increase business process efficiency through the better use of technology. As an example, cell phones have evolved into smartphones which not only provide voice communcation, but an array of digitial services that can be integrated into business processes.
Where to Begin
Begin with inventorying things like - hardware, software, peripherals, printers, copiers, scanners, telecom equipment/services, and finally staff. Next assign a business function to each asset (eg. a hard drive holds your financial data, etc.). Then determine the utilization of all assets. This task is somewhat easy on tangibles (i.e. hardware. software, etc.) but can be daunting on staff utilization. When it comes to staff utilization, time management is critical. Knowing who did what and for how long is extremely important. Tracking activities can be as simple as the use of spreadsheets, or using time tracking applications.
Once your inventory/utilization tasks are complete, it's time to look at which assets are being under utilized, and which ones are fully utilized (and may need upgrading). If assets need to be upgraded or replaced, be sure to look for special pricing from your suppliers, or special sale pricing from computer "superstores". Need help in justifying the ROI on new PC deployments? Chipmaker Intel has a PC Total Cost of Ownership (TCO) Estimator web tool to assist you.
Tight budget? Consider purchasing or leasing refurbished equpment. A story entitled "Is it time to start thinking refurbished?" has several good points when considering refurbished equipment.
Next Steps
A) Review your communication costs: This review will vary in complexity depending on the size of your business.
As an example, if you have 10 individual phone lines coming into your business, and they are only have a 10 % utilization, perhaps
it's time to look at installing a small PBX (private branch exchange) and removing 7 external lines.Having several communication providers can be costly. If you are able to consolidate your landlines, cell phones, and Internet providers into one monthly bill, you will benefit in two ways: a) typically a provider will offer a reduced rate on bundled services; and b) you (or your staff) will save time reconciling your communication invoices.
Another important item to review is your cellular provider's "System Access Fee". Depending on your provider, monthly fees range from $8.95 to $0.00 per phone. Startup cellular providers are not charging ANY System Access Fees so you may be able to negotiate with your current provider to reduce (or even remove) the monthly System Access Fee.
B) Review your printing costs: The Total Cost of Ownership (TCO) on low-end printers (laser & ink-jet) can be quite high when compared to larger workgroup printers/copiers. If you compare not only the supply costs (toner, ink cartridges, etc.) but also support and electricity costs, the move to workgroup printing will provide long term cost savings.
Consider moving from paper-based to digital workflows within your business. Not only will you save on supply costs, but typically digital workflows provide faster process times and greater productivity.
C) Review your software licencing fees: Keeping your office productivity applications current (typically Microsoft Office) can be a
costly endeavour. Consider using an open source alternative such as "OpenOffice.org".
OpenOffice.org is stable, reliable, robust and provides everything most people need in an office productivity suite. Their word processor is
called "Writer; the spreadsheet "Calc"; and the equivilent to powerpoint is called "Impress". These applications can easily be
configured to open and save files in Microsoft Office format. Outsourcing Services
Outsourcing has been a very controversial topic for the past several years, but has evolved into being a very cost effective service for small business owners. As an example, if you are hosting your own website and email servers, what are your on going costs? Today outsourcing these types of services can not only save you money, but will allow you to focus on your core business objectives.
Another option to consider is "IT managed services". If you have a small IT department (or none at all) you can retain a Managed Services Provider (MSP) to handle your day-to-day IT tasks at a fixed monthly rate.
Greening your IT
Greening your technology will actually have two long term benefits: it can save you money on your electric and air-conditioning bills; and it will reduce your carbon footprint! For information on how to go about greening your business, check out our "Green IT" web page.
