Improve Your Bottom Line by Reducing Costs

manage your budget

There are multiple ways you can improve your bottom line; resulting in a higher net income. On these pages, we often talk about marketing advice to increase revenue, which is certainly a tried and true means to improve your bottom line. But, increasing sales is a long-term strategy that doesn’t do much good when you face an impending shortfall in matching revenue and expenses. Sure, you can use promotions such as sales to make a fast impact on your bottom line but too many sales result in expectations of future discounts that result in consumer resistance to buying products when they’re not on sale. The long-term outcome of over-reliance on sales promotions is to reduce your revenue.

improve your bottom line
Image courtesy of Wall Street Mojo

Another means to improve your bottom line is to reduce costs. In the short term, reducing costs helps improve your bottom line but making the wrong cuts can result in poor product quality that destroys your brand reputation, poor employee performance due to poor morale or working conditions, and bad relationships with channel partners. If you want to cut costs that improve your bottom line, consider cutting waste from your budget as this reduces costs without the negative impact possible through other cost-saving actions. A great place to start in cutting waste is to improve the performance and longevity of expensive equipment used in your business operation.

Reduce equipment costs to improve your bottom line

When setting up a workplace for your business, a major priority is to buy machines with excellent quality and proven performance. Yes, buying quality equipment, whether office furniture, electronics, or manufacturing machinery, costs more initially but often requires less maintenance and less frequent replacement. Plus, buying high-quality equipment means you face less downtime for maintenance, repair, and replacement, which results in enhanced productivity. Rest assured, it’s worth it, in the long run, to invest in great equipment rather than waste money on cheap alternatives. Think of your equipment as an investment in exchange for long-term use of the equipment. You can save a lot this way.

Office and manufacturing equipment are all used frequently, and losing these devices may result in wasting time and money to replace them or wait for repairs as your operation languishes. Customers get frustrated when you can’t meet demand and you lose money when you can’t send invoices or record payments accurately due to equipment failure. Because the machines are used by multiple staff every day, it’s inevitable they’ll experience annoying malfunctions, especially if their evaluations (and bonuses) rely on certain production levels. You may avoid equipment difficulties that disturb your standard workflow if you understand how to correctly care for your devices.

For yourself and your staff,  equipment is critical to a productive and effective work environment. In a worst-case scenario, you need to repair your equipment repeatedly to keep your business running efficiently. Here are some helpful ways to keep things in your firm running smoothly.

Regular machine checkup and maintenance

A broken printer can massively affect your work but downtime in your manufacturing operation, whether from a lathe or some material handling equipment, sends shockwaves through the supply chain that damage your reputation with both customers and channel partners. Therefore, hire a certified repair technician to examine the machines according to the schedule established by the manufacturer and clean them appropriately. Contacting an incompetent technician may lead to a bigger problem. You can learn more at Australian Printer Services official website about certified technicians to repair equipment like printers.

Office equipment is easy to maintain as you can see the equipment every day. Harder are devices in remote locations, such as electronic substations, or in hazardous areas, such as in chemical plants. Here using IoT-enabled devices allows constant monitoring to ensure the equipment operates within tolerances and automatically shut down a piece of equipment that is beyond its functional operating level. Not only does this mean you extend the lifecycle of the equipment and face less downtime but it can also save you from costly accidents and lawsuits from them.

data asset
Image courtesy of Digi

Clean the equipment

Having these machines checked regularly will not suffice, although it’s the primary and easiest way to prolong the equipment’s lifespan. As much as possible, keep all machines spotless and dust-free, as well as at an acceptable temperature. Clean the equipment regularly and perform other routine maintenance required for each machine, such as greasing moving parts.

The equipment used in your operation comes with the manufacturer’s care instructions. A variety of software programs can help ensure you apply the right cleaning and equipment maintenance on the appropriate schedule so you never miss a required inspection or maintenance task.

Make appropriate use of your space

Storing unused equipment in the proper location helps extend the life of the device. For instance, office equipment must stay within certain temperature ranges to avoid problems.

Co-locating machinery reduces wasted efforts and possible damage to your product. I once consulted with a manufacturer of specialty metal, mostly formed into rolls or sheets for delivery to customers. Over the many decades of its existence, the firm expanded its offerings to accommodate customer needs. Unfortunately, the added new equipment without a clear plan; simply bolting down a new piece of machinery wherever a space existed on their shop floor. The result was a facility extending for over a mile that required a product to crisscross the facility as it moved from raw material to finished product. Eliminating such wasteful internal logistics actions by locating equipment used to manufacture a single product close together can improve your bottom line significantly. That’s especially true in this situation, where one product required a mirror finish that was dulled during the transportation of the product between machines. The mirror finish was re-done multiple times due to this damage.

Software updates                                                                                        

Today, many pieces of equipment and office devices run with the aid of software, which opens the firm to malware and other cybersecurity threats. Updating your operating systems, installing new drivers, and running virus scans can prevent failures that compromise your business’s productivity or cyber threats that damage your business and threaten the security of your customers, thus damaging your reputation.

Staff training

Your machines break down quickly if our employees don’t correctly use and handle them. Many pieces of equipment represent a serious physical threat to your staff and visitors. Even office equipment might present a hazard if used improperly, such as falling on an employee or giving a shock due to frayed electrical connections.

Often, using and maintaining equipment is part of your normal new hire training process; something you need to repeat periodically. Designate an employee as the point of contact for others who might have questions on the proper use of the equipment or to report problems with its function. That point person is also responsible for ensuring maintenance is done on the right schedule.

Conclusion

To ensure the equipment is in good working order, inspect and maintain the equipment properly. It is advantageous to ensure to have your machines in good working order to improve your bottom line with increased efficiency and lower your risks.

Hopefully, these tips will help significantly extend the life of your equipment. It’s easy to keep them in good shape. Remember, equipment is your means to conduct your business. Hence, when equipment fails, your business suffers.

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