If you’re looking for ways to save money for your small business, these cost-cutting ideas can go a long way in reducing your expenses and beefing up your bottom line.
A successful business may bring in a lot of revenue, but you can also end up spending a lot on day-to-day operations. Cut costs and streamline your expenses by following these money saving tips for your business.
1. Relook at expenses
Ensure you’ve got a grip on your day-to-day company expenditure. Evaluate what you spend and decide whether it’s necessary. Perhaps you can save by switching to a different supplier, cutting down on unneeded software subscriptions or reviewing contracts before they automatically renew.
The larger a business gets, the easier it is to overlook non-essential expenses. But, even with SMEs there can often be subscriptions or wasteful expenditure that you may not necessarily realise.
2. Stay proactive
It’s better to prevent an expense than try to reduce later on. Not only will you save more by not spending at all, you also won’t find yourself stuck in a situation of getting used to something superfluous that you aren’t keen to get rid of.
When you’re deciding on a new software service or supplier, evaluate all your options to see which provides the best value for money without sacrificing quality.
3. Low-cost advertising
A small advertising budget can go a long way if you know how to use it effectively. You can spend a large amount on advertising if you’re using the services of a marketing agency, but it’s become a lot easier to do it yourself
Access to an internet full of resources means there’s no excuse not to learn the basics. You can get set up with search engine and social media advertising relatively quickly. If you’re unsure, ask your employees if anyone’s familiar with the platforms. Chances are there’s a lot of untapped marketing talent already on your team.
Getting outside help rather than hiring a full-time employee for certain aspects of your work can save your business a lot of money.
Outsourcing your accounting, bookkeeping or payroll is one way to save money and have peace of mind that a professional is taking care of your accounts. Employing a full-time accountant can be costly if you don’t need their skills all the time.
There’s a whole range of services that can now be outsourced when you need them – from virtual secretaries to freelancers in every field.
5. Take advantage of tax reliefs and claims
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 a tax relief. You could also qualify for small business rate relief on your property.
There are also tax-deductible expenses across a wide range of categories, from office supplies to vehicle fuel to marketing costs.
6. Coworking or shared office space
If your business isn’t big enough to fill out an office, finding another business to share space with can cut down on one of the biggest business expenses – rent.
If you don't need a permanent office, coworking spaces are popping up at great speed, and offer excellent working places for smaller teams without the cost and hassle of lengthy and expensive leases.
Sharing with others offers more benefits than just a great way to save money. You’ll soon find yourself networking with many other business owners and entrepreneurs, leading to partnerships and learning opportunities.
7. Remote working
A lot of companies now operate with a completely remote workforce. Even if you’re not ready to cancel your lease just yet, there are many cost-saving benefits to letting your employees work from home.
Fewer people in the office means less resources and workspace required. This can also translate to reduced day-to-day office expenditure on office supplies, furniture and equipment.
8. Go green
Instilling a culture of environmentally friendly practices in the workplace can help the earth, and your pocket. Using green energy solutions, such as eco-friendly lighting and low-flow taps, may mean more upfront costs but will reduce utility costs in the long run.
If you’re not quite ready to go all out, smaller savings such as switching off lights and PCs, or printing double-sided documents can start to add up.
9. Business partnerships
Identify businesses that could benefit from your services and set up trade relationships with them. Developing a strategic partnership can benefit both you and your partner and result in less money spent on outsourced services.
Partnerships can take many forms, from finding complementary service businesses to cross-refer clients, to providing a product in exchange for another needed service. Whatever form your partnership takes, it should help your business grow and cut costs.
10. Fewer working hours
Why wouldn’t you institute a four-day work week if it meant cutting costs and increasing efficiency, resulting in better employee productivity and happiness?
Reduced working hours can also mean less office energy and resource consumption, and with all the added benefits, your business’s bottom line is sure to thank you.
What does your business do to save money? Let us know in the comments.
Outsourcing your accounting is a smart way to save money and get excellent advice. Give our team of accountants a call on +44 (0) 20 7759 7553 or email firstname.lastname@example.org
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