Published on: 06 December 2017
Last Updated on: 17 August 2019
Every business needs to look for ways to reduce the cost of overall production and distribution of their products. Most often they focus on product redesign in a way that the overall material cost will be lesser. But packaging cost can be another important contributor in the overall cost of a product. So, if you are looking to cut some cost of your product, here are 5 useful ways you should consider:
1. Prioritize Research And Development
Large business organizations need to have research and development division to determine or find the best packaging for their products. Yes, a box is a box but not all packaging made in the same process. Your research team should continuously come up with multiple product packaging designs and test each on a small scale to know exactly which one brings the desired result. Getting rid of unnecessary layering from the product packaging is one of the easiest ways to lessen the cost of packaging. Your research department can this continuously work on product redesign. This might not be a perfect option for small businesses though. So, small businesses can simply imitate market leaders.
2. Buy Packaging Materials In Bulk
Your goal should be to get the economies of scale when you buy various packaging materials. Most suppliers will offer you significant price discount when you buy in bulk. So, contact with various suppliers, check the quality of their products first and then ask for their best offers for bulk purchases. No matter how large or small your business is, you should look to have the advantage of economies of scale.
3. Cut Wastage In Every Way Possible
Wastage in packaging might be one of the reasons your company have high packaging cost. So, know the exact level of packaging waste in your business and look for ways to cut those wastages to have lesser packaging cost.
4. Adopt Flexible Packaging
Flexible packaging has brought about a revolutionary change in the packaging industry. If your product is a perfect fit for adopting flexible packaging and you are yet to adopt that, consider adopting it ASAP you can. Plastic porch packaging is the most popular flexible packaging option as it requires less packaging material per product, takes less space in storage and transportation and most importantly reduces the cost of packaging. Marketing and promotion to get much easier. If you are in a legal cannabis business, you can adopt flexible cannabis packaging.
5. Outsource Packaging
Small businesses should not invest in large packaging machinery. So, in order to reduce the cost of packaging, they can simply look for various packaging companies around and make a good deal of monthly and yearly packaging needs.
These are some common ways you can reduce the cost of packaging in your business. Apply the ones you feel perfect for your business and competitive advantage over your competitors.
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Do you constantly worry about numbers adding up correctly? In today’s fast-paced world, entrepreneurs want to stay on top of all money-related matters. They want to ensure the business has sufficient cash, capital, and profits available to remain afloat in the longer run.
However, as the business grows, you hire more employees and acquire more customers, keeping track of finances and employee monitoring becomes challenging. Before you start falling behind and losing track of receipts, hire a bookkeeper.
Bookkeepers can take over the responsibility of maintaining records for all financial transactions. They develop a system that organizes your sales, payments, expenses, costs, and debt, helping you make sense out of numbers. Precisely, you will get a complete set of accounting records, giving an overview of the company’s financial health. In turn, you can make more informed decisions based on financial data.
If you are still thinking about whether hiring a bookkeeper is worth the cost, have a look below. Here we are unfolding seven benefits of hiring a professional bookkeeper.
1. Analyzes company’s standing:
Are the business revenues spiking? Is rental expense consuming a massive chunk of profits? With a bookkeeper on board, you can find answers to all these questions. They keep a close eye on numbers to find out where your company stands financially. They simplify complex information by categorizing data to promote understandability.
Moreover, you can also ask bookkeepers to prepare financial statements to understand the company’s financials better. In case they lag accounting proficiency and decision-making skills, encourage them to pursue higher education. Perhaps, they could look for a master of accountancy if they only have a bachelor’s degree. Alongside finances, they will be better able to analyze financial metrics. Hence, helping you figure out where you should invest money and cut costs.
2. Prevents errors:
Undeniably, mistakes can be super costly. In addition to incorrect recording information, misreporting any income or expense can lead to hefty fines from the regulatory bodies. Likewise, mixing up different types of expenses and data entry errors can result in inaccurate financial records.
Professional bookkeepers with a keen understanding of finances and numbers are less likely to make mistakes. They look into all the bills, receipts, invoices and record them into accounting software. At the same time, they organize all the data promptly, ensuring your books are up to date.
3. Identifies issues in cash flows:
Sometimes, businesses are earning substantial profits, yet they don’t have sufficient cash available. As bookkeepers handle day-to-day recording of invoices and receipts, they have a good handle on your income and spending habits. They closely monitor how much money is going out of the business (outflows) and coming in (inflows). The minute outflows exceed the inflows; bookkeepers will alert the upper management about cashflow problems.
Additionally, they can identify problems within the cash flow. For instance, if inventory holds a lot of cash, bookkeepers will suggest managers sell it to recover the cost. Likewise, if debtors delay payments, they will suggest the accountant negotiate credit terms with creditors.
4. Accounts for tax deductibles:
Amongst all business tasks, paying taxes is every entrepreneur’s least favorite. After all, no one likes giving away a chunk of profit to the government. Surprisingly, a bookkeeper can help in reducing the overall taxable income. They work together with tax specialists and account for tax deductibles to ensure you don’t overpay taxes. From depreciation, travel to revaluation expense – they account for every cost to scale down the taxable income.
Similarly, they provide interim and year-end financial statements to determine the company’s annual tax obligation. Hence, you can make decisions beforehand that can modify or lower the tax bill. For instance, if the tax policies are more flexible for C corporations, you can switch from limited liability to a C corp. Besides this, having proper records can help with the tax return filing procedure too.
5. Fosters business growth:
Bookkeepers can facilitate business decisions about day-to-day business operations. They can forecast seasonal ups and downs, ensuring you have sufficient capital available when revenues are low. Similarly, they encourage managers to set some funds aside when profits are spiking.
Greater awareness of spending patterns and sales trends can help entrepreneurs lower operating expenses. Hence, they can save money in the long run and invest it in business growth. Additionally, not having to worry about finances gives business owners enough time to focus on other core business operations.
6. Prepares business for an audit:
Until you demonstrate non-compliance with tax obligations, your business won’t go through an IRS audit. However, you have to perform an internal and external audit to assure stakeholders that your company complies with accounting standards. Luckily, having accurate records prepared by a professional bookkeeper will ensure a smooth audit process. They would have correct records to support the income tax returns.
At the same time, bookkeepers organize all receipts and invoices. Thus, the auditors can see all business expenses are legitimate. It will ensure you haven’t over or understated the profits or income, regaining investors’ trust in the company.
7. Helps in securing funding:
Today, lenders need accurate records and financial information before giving out a loan. After all, they have to evaluate your repayment capability to ensure you will repay the loan timely. Bookkeepers maintain complete records, showing lenders that you know the company inside out.
Similarly, they outline past performance to show banks and financial institutes that you have a solid financial history. In addition to gaining the lender’s trust, you might be able to secure a loan at a lower interest rate with flexible repayments.
Conclusion:
In a dynamic business landscape, bookkeepers can help you through all stages of starting and growing the company. They maintain records, organize data, and keep a vigilant eye on finances. They also preserve receivable accounts and prepare payrolls. Simultaneously, bookkeepers help companies lower taxable income by accounting for tax deductibles. Having a bookkeeper on board will provide more benefits and less stress while ensuring effective financial management.
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The demand for salmon continues to soar as it drives the expansion of aquaculture. For many years, conscientious consumers have been advised by the environmentalists to keep away from farmed salmon, but things have begun to change due to the evolving industry. Salmon is rich in protein as well as omega-3 fatty acids which are ideal for your heart’s health. As a result, salmon has increasingly been marketed as a healthy product for consumption. The demand for salmon has increased more than 20% in the past years while consumption is much higher than it was in the eighties. Despite these promising numbers, many people still question the viability of salmon farming. To understand whether or not salmon farming is sustainable, here is what you need to know.
Aquaculture Then and Now:
Aquaculture, the practice of raising seafood within a controlled setting, has been around for many years. This practice was used by the Australian indigenous people and people from the Roman Empire. In China, aquaculture during the Tang Dynasty resulted in the mutation which created goldfish which is now used as a ubiquitous pet in homes.
Currently, the aquaculture industry is one of the fastest growing sectors in the entire world. The natural fisheries have placed limitations on the number of fish that can be caught during a particular period of the year. As an alternative, fish farming has offered consistent and large quantities of seafood and fish. The addition of aquaculture stock including oysters and salmon has been instrumental in meeting the current demands for seafood, making aquaculture a more sustainable practice.
Today, aquaculture and Salmon farming plays an instrumental role in the economy, offering numerous job opportunities in the operations as well as the ancillary services. The Environmental Defense Fund states that exports of global fisheries now earn more revenues as opposed to any other traded food component such as coffee, cocoa, and rice. This aspect illustrates the sustainable aspect of aquaculture and farmed salmon.
What are the Misconceptions?
The farmed salmon industry faces so much negative perception, most of which is brought about by the media hype. One of the greatest misconception people have about farmed salmon is that doesn’t offer the same nutrient quality as the wild salmon. Nevertheless, just like the wild salmon, it is imperative to not that farmed salmon has low saturated fat as opposed to other kinds of proteins. Moreover, the rich, pink hue of this kind of fish is created from natural compounds found in their feed. As mentioned earlier, one of the advantages of farmed salmon is its provision of the beneficial omega-3 fatty acids which can be seen in most wild salmon varieties. Through a number of independent studies undertaken by the National Cancer Institute, FDA, and other reputable companies or organizations, PCB levels evident in the wild and farmed salmon are safely under the tolerance levels that the FDA has set.
Apart from the nutritional misconceptions, there’s some sort of confusion among the public regarding the environmental impact of salmon farming and the feed conversion processes. According to recent studies, the feed conversion ratio of farmed salmon is quite lower compared to the wild salmon. Moreover, the extensive water testing evident in salmon farming has shown that the farming process doesn’t negatively affect the water’s overall quality.
Low Impact on the Environment:
According to studies conducted by the National Oceanic and Atmospheric Administration, aquaculture has less impact on the environment. If anything, this practice can benefit rather than destroy the environment. This is because practices such as salmon farming can be conducted using practices which don’t harm the environment. That way, it becomes possible to meet the ever-growing demand for seafood, thus supplementing the fish that has been harvested in the wild.
Although there are documented issues associated with fish farming such as the use of chemicals, water pollution, and threat to natural fish, farmed salmon among other kinds of fish farming is a sustainable solution to the depletion of wild fish.
Offshore Expansion:
One of the advantages of salmon farming is its flexible nature. To promote sustainability, salmon farming salmon can be moved from nearshore onto land. The ocean is large and there are massive opportunities for farmers to expand the practice in different locations. Farming can be done on land or taken further offshore where the impact on the environment is minimal because farming is done in an open water body where waste can be carried further beyond the sea.
However, this can be capital intensive because farmers need systems that are physically stronger to manage the challenges brought about by wave action and wind. As the industry continues to expand, chances are farmed salmon will be moved out into other environments. Given the current trends in technology and innovation, it will not be surprising to see farmed salmon taking the world by storm. Where the practice is today portrays some massive steps from where the practice was some years back, a clear indication that salmon farming is bound to take the world by storm in the coming years.
The Future of Farmed Salmon:
When visualizing the future of fish farming, it is imperative to establish different components in connection to the practice. Some of these include its environmental impact, its effect on health, and its sustainable aspect. With regard to sustainability, as the demand for protein continues to grow, their production will continue to increase. In such a case, nutritionists will be looking at practices as salmon farming to see how they will continue to provide the much-needed protein. And despite the various challenges associated with farmed salmon, it is imperative to note that aquaculture is an efficient way of producing protein. In that regard, salmon farming leads the way when it comes to innovation in the field of aquaculture, offering a solution to the global problem of protein production. To attain the goal of sustainability, it is important for salmon farmers to continue utilizing new innovation and eco-friendly techniques which have a lesser impact on the environment.
Final Word:
Aquaculture has been one of the most dependable practices for providing seafood and ensuring the provision of much-demanded protein. Generally, farmed salmon is a sustainable practice and an excellent alternative to wild fish.
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What Are Casters?
Casters are familiar to most people, though you may not know what they are called. Casters are a small set of wheels, usually found on a desk chair or some other piece of furniture. However, they have a whole host of alternative uses. Are casters and wheels the same thing? Not exactly.
Why Do People Use Casters?
Casters are primarily used for one reason: They make things easier to move. Heavy pieces of furniture will often be placed on casters because it is difficult for one person to move. With a good set of casters, even the heaviest objects can be moved with relative ease. Casters are not just used for heavy items, but also for items that have to be moved frequently, like a table on a patio.
Are There Different Types Of Casters?
Yes, there are many different types of casters. This might seem surprising for such a simple device, but a caster isn't as simple as you may think. Most of you will be familiar with cheap plastic casters. As such, you probably know that it doesn't take a whole lot to break them. That's why they're cheap. However, there are casters out there that can hold thousands of pounds worth of weight. It's all a matter of design and materials.
All casters can be separated into one of two categories: Swivel or rigid. The names are pretty self-explanatory. A rigid caster will only roll in two directions, that being forward and backward. A swivel caster will pivot and roll in any direction. So, why would anyone use a rigid caster, you ask? Because they are usually stronger. In this case, it is a choice of durability vs. convenience. It is also important to know the difference between locking and non-locking casters. Locking casters can be held firmly in place by flipping a small lever. This is good for objects that require a little more stability, such as a cabinet that holds breakable objects. There are also specialty casters with all kinds of different features for specific purposes.
How Can I Use Casters In A DIY Project?
If you are building something that is likely to be moved on a regular basis, you might as well work that factor into the design by adding some casters. The first thing you need to do is figure out the approximate weight of the object that you are building. This will tell you how strong the casters will need to be.
If you don't want to put casters on all your furniture, but you still want to move it around easily, you can find a supplier of material handling and storage equipment such as a cart or dolly. A simple square of wood with casters on it can do wonders to make moving heavy objects much easier. I recommend covering the cart surface with carpeting so that it doesn't scuff the furniture or your walls.
If you have a large and heavy toolbox (as many of us do), you might consider putting some wheels on it. Naturally, these will need to be strong wheels. Don't go with plastic or aluminum for this job, as only steel will be reliable enough for the serious weight.
Since we are thinking along these lines, here is a shortlist of some household objects that might benefit from the addition of some casters.
Chairs
Toolboxes
Medical Equipment
Washer/Dryer
Backup generator
Beds
Shelves
Wrapping Up
Casters can improve the mobility of many different DIY projects you might have already completed, or plan to do in the future. This can make many heavy objects in your home or garage much easier to move. If you wanted to reorganize a space or clean underneath or behind heavy items, casters can turn this difficult task into a simple one.
