Reducing your occupancy costs is a top priority for any business. Not only does it free up more money to reinvest in the company, but it can also make you more competitive in the market. Here are 10 tips to help you get started:
What are occupancy costs exactly?
When you are looking at your occupancy costs, you are not only looking at the rent that you have to pay for space, but also the other expenses involved with having employees. This will include things like taxes, maintenance expenses, insurance, and utilities. Occupancy costs can also include additional costs, like payroll if you are leasing staff at the building.
1. Reduce utility costs
A number of factors contribute to a business’ utility expenses, including the type and age of equipment, the space’s location, and insulation, as well as energy-efficient or legacy lighting systems. To reduce your monthly expenses from utilities, consider setting up a meeting with your property manager to discuss these pain points. Your business electricity bill can be reduced by comparing the prices of different providers and choosing a better provider if there is one. In some cases, you may be able to upgrade energy-efficient lighting with LED bulbs or install occupancy sensors in the lights.
Alternatively, if your building has central air conditioning and heating systems, you can ask about installing zoning controls, which could lower utility expenses by allowing you to only heat and cool spaces that are occupied.
2. Consolidate network technology
Many companies run multiple network cables in different wiring closets, which often ends up becoming a messy and overly complicated system. To save on connectivity and hardware costs, consider running Ethernet cabling throughout your office space and connecting all of your devices to one location. This way, it will be much easier for tech support to troubleshoot problems if your entire network is running from the same source. In addition, consider investing in a wireless local area network (WLAN) to reduce installation costs and allow employees to work more flexibly throughout the office without being confined to their desks.
3. Evaluate your cell coverage
If you have spotty coverage at your business, then your cell phone carrier may be able to provide you with a mobile repeater. This small device receives the signal from your cell phone service provider, which it then amplifies and broadcasts throughout your building. The result is better coverage for everyone on your network, allowing them to use their phones more easily and making them more efficient overall!
4. Utilize the space in your closet
Closets are often underutilized, much to the detriment of many businesses’ bottom lines. If you have extra storage space in your office building’s closet, consider renting it out to another company that has a similar need for storage. You can charge an hourly or monthly fee for use of the space, or include it in a larger storage unit that you rent out to multiple companies. Keep in mind that this is an unconventional option, so check with your property manager before you make any final decisions.
In addition, if you have a large supply closet or huge bank of lockers in the office, consider leasing them out to employees who need extra storage for personal belongings.
5. Get rid of old technology
Old equipment can take up valuable office space, while also being less energy efficient than newer models. To reduce your overhead expenses, consider selling or recycling your old devices and replacing them with new ones. This will free up valuable space, while also ensuring that your office stays up to date with the latest technology. Old devices use more power, which means more money out of your pocket, so it is important to follow through with the plan to get rid of old devices.
6. Leverage wireless printing
Most people have gone completely digital these days, which means that they no longer need access to printers on a regular basis. Consider setting up a wireless printer for your employees to use whenever they need it, so you don’t have to pay for the space and hardware costs of keeping an old-fashioned printer on hand.
7. Perform regular maintenance
Making sure that your building is in good condition will save money in the long term, as it can lengthen the life of its equipment and keep repair costs down. To maximize the value of your office space, consider hiring a team to perform regular preventative maintenance on all of your systems and appliances. If your water heater, HVAC system, or any other piece of equipment breaks down, not only will you have to pay for the cost of replacing it, but you’re also losing out on money that could have been saved by performing regular maintenance in the first place.
8. Separate workspaces
There are many benefits to telecommuting, including reduced overhead costs and an improved work/life balance. If your employees have been requesting the ability to telecommute or work from home, consider converting a portion of your office space into a “flex room” where they can go to make and receive calls and finish projects. This room will serve as a quiet, distraction-free retreat for employees who are working remotely. They can also take advantage of any other benefits that you offer your full-time employees, such as gym memberships or medical insurance.
9. Look for energy credits
Energy costs can take a sizable chunk out of your business expenses, so it’s important to look for ways to reduce them. Many utility companies offer rebates and credits when you are working to upgrade or replace equipment that is less energy efficient with something more high-tech. Be sure to check with your local provider often-rebates change frequently!
Reducing your occupancy costs can be as simple as making a few small changes in the way you use your office space. By following our tips, you can free up valuable square footage and save money on energy bills, repairs, and replacements. Keep in mind that these are just some of the many ways to reduce your overhead expenses-talk to your property manager or facilities team about other options that may be available to you. With a little bit of effort, you can make sure that your business is running as efficiently as possible!
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