The number 1 priority for all Small Business owners is to reduce expenses and maximise profit. With the Australian food and beverage industry rapidly changing, it is very easy to get caught up working in the business instead of on the business. When this happens, businesses usually get an almighty shock when they see their expenses sheet.
That brings us to the question, what expenses can you reduce and not impact business operations? Fortunately for Australian Food and Beverage businesses there are multiple ways your can reduce your overheads and maximise growth.
Here are some expenses your business can reduce easily in 2022.
1. Reduce Stock
Stock is one of the largest expenses for all Food and Beverage businesses. Many businesses fall into the trap of over or under stocking products to try to increase cashflow. However, either option actually does more harm for your business then good. Think about it, if you have too much stock you are under pressure to sell before the expiration date. On the flip side if you under stock you may need to turn a customer away if you don’t have the product they are looking for – either way will impact your business.
A good way to reduce stock expenses is by Forecasting your ordering. Using a Food and Beverage management software like EasyVend, Businesses can generate sales reports that identify order trends, busy periods, and quiet periods. The benefit of using a management system for stock management is you can make strategic ordering decisions that reduce overall stock expenses.
2. Minimise Staff During Quiet Periods
Staff are vital but expensive for all businesses. As the Food and Beverage Industry continues to change, it’s so important that you analyses your businesses operations.
Every business has periods where they are busier than others, a quick and easy way to reduce staff expenses is by limiting the total staff number you have operating during quiet times. Get together with your bookkeeper and figure out what periods you are quieter than others. Only roster on the staff that are required, there’s no point spending large amounts of money on staff that are not required.
Related Article: 5 Opportunities for Food & Beverage Businesses in 2022.
3. Shop around for better utility providers
Electricity, Internet, Phone, and other subscription services are essential for all businesses. Many Food and Beverage businesses remain contempt with their current provider and or stick with there regular provider out of loyalty, unaware that there are cheaper options available.
A quick way to reduce your utility costs is by shopping around. Shopping around for the best deal could save your businesses hundreds if not thousands every year. A good thing about Australia’s current market is there is an abundance of utility providers out there and they are all fighting for your business. Your Business should make a habit of reviewing utility costs once a quarter and assessing what else is out there.
4. Limit Your Product Offering
A common mistake made by many Food and Beverage businesses is diversifying their product offering. I get it! Offering an expanded menu can and does cater for more customers but it does also increase your costs and risks.
Limiting your core offering to say a handful of products can reduce your stock expenses and overheads. By offering a more targeted and controlled product, you limit the risks of having stock expire before being sold.
5. Unused Systems or Equipment
With the Food and Beverage industry evolving some of the equipment or systems you use may be redundant or not needed any more. A lot of Food and Beverage business keep unused or outdated equipment on location and connected to power sources etc. The problem with this is it costs your business money just having it there.
Removing unused or outdated equipment can reduce your businesses total expenditure and will give you tonnes of space for other uses. It’s always important to understand what is needed and what is not, or you could risk paying more money on things your business doesn’t necessarily need.
Reducing expenses at your business is easier said than done. Reducing your expenses won’t happen overnight, you will need to have a clear and concise plan laid out and ensure that you stick to the course. The 5 tips mentioned above are a few ways your food and beverage business can reduce expenses in 2022.
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For food and beverage business, EasyVend supports and automates every part of your business, freeing you up to grow your sales simply unlike other ERP systems. Using the latest technologies, EasyVend removes common business frustrations and opens your doors for future growth.
EasyVend includes all your everyday management features like Stock Management, Online Ordering, Invoicing, Receipting, Automatic Credit Card Payments, Integrated Accounting, Route Management and Business Reporting in one central, industry specific solution.
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