Keeping a tight reign on cashflow and budgets is extremely important when running a small business.
While you can’t make your clients pay you any quicker, you can look to reduce your ongoing costs. By taking the time to really analyse your existing costs, you can make substantial savings in your business.
Switch your business banking
Small business banking has undergone a revolution in recent years. You are no longer tied to the main high street banks and their banking charges. A number of challenger banks are now on the market. A business bank account can be opened in a few hours and run it entirely from your smartphone.
The cost of running the accounts is often much less than traditional banks and some incorporate invoicing, accounting, payroll and tax features, which can save you money if you have separate software subscriptions for these.
Review your suppliers
It’s easy to just keep ordering the same items from the same suppliers without giving it much thought. Taking the time to do a price comparison such areas as:
- Energy supplier (https://www.comparethemarket.com/energy/bus,
- Uniforms and id badges idcardcentre.co.uk/id-card-accessories/Name-Badges
- Mobile contracts https://startups.co.uk/best-business-mobile-phone-plans-contracts/.
- Business insurance https://www.confused.com/small-business-insurance
Small savings in each of these areas can add up to significant savings over time.
It’s understandable to be reluctant to change suppliers if they are reliable and have a good working relationship with them. If this is the case, don’t be scared to negotiate with them. They won’t want to lose a good customer and will understand that they need to price themselves competitively to be successful.
Go green, save money
Sustainability and the environment are hot topics at the moment and by adopting a few greener initiatives, you could save a lot of money.
- Switch off lights, computers and other technology when not in use.
- Try to become a paperless office. Don’t print something unless you have to.
- When buying office furniture or equipment, look at buying second hand where possible.
Consider introducing remote working
There are huge benefits to working remotely. Employees now expect a lot more flexibility in their careers. Well run remote working policies have been shown to:
- Improve employee engagement and productivity.
- Lead to better health and wellbeing.
- Attract better talent into a business as you can look further afield for the skills you need.
The cost savings of remote working can be substantial. Having fewer employees on-site can reduce overheads. Improved employee health and wellbeing leads to fewer sick days.
It’s not always necessary or affordable to employ someone full time in a role. Make the most of your budget by outsourcing what you need to. Using a Virtual Assistant a few hours a week is preferable to you spending your valuable time on admin tasks and costs a lot less than hiring someone. Look at which areas of the business you could apply this to, from accountancy to marketing.