Feel like the cost of running your business is increasing? You’re not alone. Many business owners struggle to keep up with rising costs, causing strain and pressure, as well as the possibility of job losses.
To help keep things under control, you’re going to need a plan of action to cope with your outgoings while still producing your best work. Get your finances back under control with these five things that will help your business save money this year.
1. Go green
How green is your office? If you’re not already adopting environmentally-friendly practices, then it’s time you got started. A greener company helps improve your reputation and can save your business a lot of money too. Get all employees onboard to create a greener office and benefit from doing good for the environment as well as saving on your running costs.
As your business grows, you might find that you need even more hands on board to keep things moving in a forward direction. However, adding more staff to your team will increase your business costs, which can cost your company more than it’s bringing in. Outsourcing certain job functions, therefore, can be a great way to keep staffing costs down. Hire freelancers for ad-hoc work instead of bringing on a new member of staff. They’ll have their own equipment and you won’t need to pay benefits and other costs - saving you money in the long-run.
3. Buy used
Do you always need new equipment? Whatever you’re buying, there’s likely to be a way to get it cheaper. Technology is a great example of equipment you can buy used or refurbished that will still do a great job. Meanwhile, check out truck auctions nearby to help you save on vehicle costs. You can get some good bargains by shopping around and won’t have to compromise on quality.
4. Be more efficient
How productive are you and your employees? Could processes be improved to get more work done quicker? Start looking at all of your processes to see if things can be simplified - it could make a huge difference to your business. Learn how to be more efficient during your workday, helping you to save money on wasted time and potentially find new and cheaper ways of doing things. Set targets for your employees to push them to work hard, the extra effort could make a lot of difference to your business’ overall spend.
5. Carry out a supplier review
How often do you check in on your outgoings? Is it possible you could save money with a different supplier? While you might go through procurement exercises for some business functions, others like your utilities can be overlooked. Carry out a regular review of your suppliers to see if cheaper alternatives can be found to save your business money.
Cutting business costs will make your small business more efficient and less wasteful. Find ways of saving money to help you maximize your profits and encourage growth by this time next year.