Seven Ways Businesses Can Save Money

Seven Ways Businesses Can Save Money

Whatever sector you operate in, the chances are you’ve been hit by price rises in recent months. Whether it’s rent and energy or staff and supplies, small businesses increasingly have to cover more significant costs, even for necessities. This means that now could be the ideal time to assess where you are and look for opportunities to save money. But where do you start?

Review everything

While not a small task, it’s worth spending some time at the outset looking at where you’re spending money and deciding if you need to do so. For example, you may have signed up for software you no longer need, receive magazines you could access online for free, or be paying over the odds for business bank accounts. Even if these are only small amounts, they can soon add up over the course of a year, so if they’re not adding value, cancel what you can – although check for any penalty charges before you do so.

Renegotiate your bills 

As some expenses will be paying for essential items, you won’t be able to cancel them, but that doesn’t mean it isn’t worth a phone call to the supplier to see if there’s a better deal to be had. Some competition is coming back into the energy market, so your supplier may be able to offer an improved deal or even a fixed rate, which will add some clarity to your monthly outgoings. Contracts may also be available with internet providers, stationary suppliers and any rented equipment you’re paying out for.

Embrace remote working 

Research suggests that workers prefer to work from home or split their time between home and office, so implementing a remote working policy could be a win-win. Opting to rent space in a co-working facility rather than paying rent on an entire building can save significant money. Going fully remote would remove such costs altogether. However, investments will need to be made in bringing the team together, ensuring they have the tools to communicate and collaborate effectively.

Utilise technology

As well as offering a way for teams to collaborate when they’re not in the same building, there are many other ways technology can help save businesses money. Investing in automation technology, such as accounting software that automates tasks like reports and invoicing, or investing in cloud-based storage, which reduces the reliance on paper and printing, can have a significant impact on costs, all while boosting efficiency and reducing the need for someone to carry out repetitive tasks.

Hire smart

Staffing costs, including wages and national insurance contributions, are the biggest outlay for many small businesses, so looking at ways to reduce the costs associated with hiring will always be a smart move. Ideas to consider include utilising social media platforms such as LinkedIn rather than paying for the services of a recruitment company and hiring younger or less experienced talent, as this will likely cost you less. A robust training policy is helpful if you decide to go down this route. Training people and helping them to progress is also a great way to build loyalty and improve staff retention, something which will lead to further cost savings in the future.

Outsource 

Of course, hiring someone to carry out every task within a business will soon become pretty costly, so hiring smart also involves looking at where it would be better to outsource rather than have talent in-house. One area where this is often effective for a small business is when it comes to accountancy services. As a small business owner, you can soon find yourself spending significant time on financial reporting, payroll and self-assessments. Outsourcing this to a professional accountant can save time and ensure you meet all your obligations. They’ll also be able to advise on any relevant tax breaks for your company. Other areas to consider outsourcing include web design, marketing and sales – anywhere you lack skills but don’t need a full-time resource.

Buy second-hand

Whether your business requires a few laptops or a factory full of machinery to run effectively, you’ll be able to save money by opting for second-hand equipment rather than the latest bit of kit. Multiple websites, often including the manufacturer’s own, now offer refurbished gear at a fraction of the price of new kit. Whether new or old, it’s also worth implementing policies to encourage your team to turn everything off at the end of the day – lights, printers, personal devices, and so on.