Watch the pennies and the pounds look after themselves. Tips to save on expenditure during a cost of living crisis.
There are a number of things you can do in order to help that bottom line figure and to ensure the business becomes more lean in its spending. Below, we have outlined just 10 areas that, as a business, you should address:
1. Explore an alternative place of business
Instead of making a long-term commitment to rent office space, why not consider another arrangement? Depending on the nature of your business, you could, downsize/ seek a co-working arrangement/ convert your business so that you and your employees work permanently from home.
2. Draw up a budget
Having a budget that you keep to will not only help you impose some financial discipline on your business costs but allow you to benchmark those costs on an ongoing basis.
3. Move marketing online
You need to make every pound count, so it’s important to market your business online.
It’s a relatively low-cost way to execute marketing campaigns you can measure and monitor. You can also try out new organic formats and engage with customers via social media or blogs.
4. Pool your equipment with other businesses
If you have good relationships with other small-business owners, it’s worthwhile collaborating so you can share equipment or bulk buy goods and materials.
5. Use part-time and freelance staff
There is a large and neglected talent pool among freelancers and part-time workers, especially those people in their 40s and 50s.
6. Don’t automatically renew premiums and services
If you automatically renew services you’re probably paying over the odds.
7. Avoid unnecessary charges for finance
You can lose hundreds, even thousands, of pounds each year by going over your business credit card limit and being late with loan repayments. By staying on top of bills and paying them on time, you can avoid such interest charges.
8. Learn from your bank
Your bank should be able to offer you some advice on how you might reduce finance costs in your business. As they deal with thousands of business customers, they will have gathered plenty of insights they can share.
9. Don't be afraid to haggle
Be prepared to haggle hard every single day, without any embarrassment, with a smile and humility. Street-savvy business nous never goes out of fashion and if you can develop it, you’ll survive in these most cut-throat of times.
10. Seek out tax reliefs
You can benefit from a wide range of small-business tax reliefs. If your business is involved in research and development, you could be eligible to claim the cost of your projects as tax relief
If you're still confused about reducing your business costs - get in touch. We can perform an audit and get you on track for 2023.