Actions to reduce operating costs

By Shamitha Ramanan

By lowering your operating costs, you can outperform your competitors. Small business entrepreneurs ought to constantly hunt for strategies to save costs without compromising the caliber of their goods or services. 

Consider these suggestions to lower your company’s operational expenses and possibly increase revenue:

1. Automate tasks

Numerous internet platforms and software tools are available that help streamline and automate a small business’ daily operations. Numerous functions, like bookkeeping, website hosting, marketing communications, payroll, and others, can be handled by these systems. 

Technology is beneficial because it encourages productivity. Efficiency results in lower operational expenses, especially for things like direct labor.

2. Outsource 

Delegating certain jobs to subject matter specialists will help you save money and provide even better outcomes. Marketing and advertising are two areas that gain most from outsourcing. Certain operations can be outsourced as a long-term investment that pays off in the long run.

3. Find a freelancer

It’s one thing to outsource your IT department or human resources’ requirements, but what about routine tasks? In your company, freelancers might step in to cover tasks that aren’t always required. 

It makes little sense to hire a full-time staff for sporadic demands.

4. Pay your bills in advance

Many suppliers may give you a discount if you pay your bill ahead of time. Savings of even 2%–3% every billing cycle can add up quickly. 

To minimize any late fees or other penalties, make sure to at the very least pay your invoices on time. The same holds true for any other debt you have, including loans. If you are late or start missing payments, your interest costs might rise.

5. Think eco-friendly

Your company’s running costs go up when you print everything from fliers and catalogs to internal papers. Encourage staff to print papers only when absolutely required, and if you must print a catalog, purchase a size that will prevent any from ending up in the recycling. 

Compact fluorescent lighting should be used to save heating and cooling expenses, and physical waste should be reduced. To save energy, disconnect the equipment from any unused workstations to decrease electricity usage. You’ll save money on monthly office supplies prices in addition to electricity bills.

¿QUÉ SON Y CÓMO SE CALCULAN LOS COSTOS OPERATIVOS DE TU EMPRESA?

Por Shamitha Ramanan

Los costos operativos son cualquier gastos que son requeridos para el mantenimiento del día a día y para la administración de tu empresa. Comúnmente se refieren como “gastos generales”, estos costos comerciales esenciales incluyen electricidad, nómina y renta de oficina. Las empresas pueden recortar en gastos superfluos y ahorrar costos al revisar gastos operativos.

El costo de los productos vendidos es uno de los principales elementos de costos operacionales (COGS siglas en inglés). Los gastos directos que incluyen la fabricación de productos o servicios ofrecidos por tu compañía son conocidos como Costos de Bienes Vendidos (COGS por sus siglas en Inglés)

Índices de gastos operativos

Los datos de ingresos operativos y de gastos operativos son las dos piezas fundamentales de información de costos operativos que puedes reunir.

Ingresos operativos

El rendimiento total generado por la  operaciones de tu negocio es conocido como ingreso operativo. El ingreso operativo se calcula usando la siguiente fórmula:

Ingreso operativo = Ingreso Total – Costos operativos. 

Índices de gastos operativos. 

Por otro lado, los datos de los gastos operativos sugieren sonido financiero. Sin importar que tan grande o pequeño sea tu firma, es más simple compararte con otros dentro de tu ramo cuando la eficiencia se expresa en porcentaje

Al comparar directamente tus gastos con tus ingresos, los OER (Índices de Gastos Operativos por sus siglas en inglés) te permite monitorear tu eficiencia. La ecuación de OER es la siguiente: 

Índices de Gastos Operativos = Costos Operacionales ÷ Ingresos Totales 

Traducido al español por Daniela Ariza. Para leer el artículo en inglés, haga clic aquí.

Start a Construction Business in Austin, Texas

By Monica Peña

Are you wanting to start a business in the construction industry, but don’t know where to begin?  Whether you specialize in flooring, remodeling, painting, or roofing, below are helpful tips to successfully launch the company.

  • Get experience.  If you have not already worked for a construction business, there are many aspects of the business that you may not have considered.  Industry rules related to areas from permits, licensing, contracts to customer service can be less straight forward than anticipated.
  • Register the business.  Registering your business establishes it as a legal entity which helps the owner have limited personal liability, receive funding, and create a brand that is recognizable to potential customers.  
  • Create a business plan. A business plan can help with all aspects of your start up from potential problems, pricing to explaining the concept for your business. It is a road map to the success of your business.
  • Fund your business.  Figure out a budget and how the construction business will be financed. How will material and labor be paid for? How and when will payments on projects be received?
  • Decide on the niche of the company.  Choose the specialty of the work whether projects are commercial, residential, or government contracts. Determine certain area of Austin or surrounding towns that the business will concentrate.
  • Build a marketing plan.  This includes creating a strong brand with name, logo, and figuring out how to communicate the niche of the company. Design a plan to communicate with potential clients, customers, and territories.  
  • Take advantage of resources available for your new business. EGBI provides training, coaching, and support to aspiring and existing business owners who face barriers to growing a successful business.  Staff helps connect business owners with different business tools and outside resources.

Contact us to meet with a business coach that can help guide you through your small business journey. To get started, register HERE.

Open a Daycare in Austin, Texas

By Monica Peña

Are you wanting to start a childcare business, but don’t know where to begin?  Texas Association for the Education of Young Children (TXAEYC) is a state affiliate of the National Association of Education of Young Children.  This is an excellent resource in Central Texas for anyone wanting to get started in the early care and education industry. TXAEYC offers updates in the childcare rules/regulations, continuing education, training opportunities, and networking events to learn from peers.

Below are some more helpful tips to successfully launch a childcare business.

  • Get experience.  If you have not already worked in childcare, there are many aspects of the business that you may not be aware.  Industry rules related to areas from documentation, cleaning supplies, snacks, communication with parents can be less straight forward than anticipated. This is where exposure to this type of circumstances would be beneficial.
  • Register the business.  Registering your business establishes it as a legal entity which helps the owner have limited personal liability, receive funding, and create a brand that is recognizable to parents deciding on using your services for their children.  
  • Create a business plan. A business plan can help with all aspects of your start up from potential problems, work flow, pricing, what is included in your services, and so much more. It is a road map to the success of your business.
  • Fund your business.  Figure out a budget and how the childcare business will be financed.
  • Decide on the niche of the company.  Choose the specialty of the services being offered by the childcare facility. Will your center offer after school services, STEM learning, language immersion, or any other special services?  Determine certain area of Austin or surrounding towns that the business will concentrate.
  • Build a marketing plan.  This includes creating a strong brand with name, logo, and figuring out how to communicate the niche of the company. Design a plan to communicate with potential parents and community partners that can refer families to the business.  
  • Take advantage of resources available for your new business. EGBI provides training, coaching, and support to aspiring and existing business owners who face barriers to growing a successful business.  Staff helps connect business owners with different business tools and outside resources.

Contact us to meet with a business coach that can help guide you through your small business journey. To get started, register HERE.

Start a Cleaning Business in Central Texas

By Monica Peña

Are you wanting to start a cleaning business, but don’t know where to begin?  Below are helpful tips to successfully launch the company.

  • Get experience.  If you have not already worked in a cleaning business, there are many aspects of the business that may not be clear.  Industry rules related to areas from chemicals to customer service can be less straight forward than anticipated.
  • Register the business.  Registering your business establishes it as a legal entity which helps the owner have limited personal liability, receive funding, and create a brand that is recognizable to customers.  
  • Create a business plan. A business plan can help with all aspects of your start up from potential problems, pricing to explaining the concept for your business. It is a road map to the success of your business.
  • Fund your business.  Figure out a budget and how the cleaning business will be financed.
  • Decide on the niche of the company.  Choose the specialty of the work whether it is to clean commercial, residential, or after construction jobs. Determine certain area of Austin or surrounding towns that the business will concentrate.
  • Build a marketing plan.  This includes creating a strong brand with name, logo, and figuring out how to communicate the niche of the company. Design a plan to communicate with potential clients, customers, and territories.  
  • Take advantage of resources available for your new business. EGBI provides training, coaching, and support to aspiring and existing business owners who face barriers to growing a successful business.  Staff helps connect business owners with different business tools and outside resources.

Contact us to meet with a business coach that can help guide you through your small business journey. To get started, register HERE.