Living costs are at an all-time high. You don’t need us to tell you that. With more and more money going out, it’s essential now more than ever to cut those costs where you can.
Here are some top tips on how to preserve those pennies in your business.
Work with what you’ve got
Renting out space for you and your employees to work from can be great, however, it can certainly be costly. Perhaps you have a spare room that you can substitute for office space? While it may not seem the most professional option, it doesn’t cost you anything.
If you don’t feel comfortable sharing your personal space with employees, consider allowing them to work remotely from the comfort of their own homes. This not only cuts costs in both utilities and travel but has been proven to boost employee morale.
You could also look at coworking spaces, office sharing, and multi-use space options. There are lots of ways to run an office now, as we’ve seen throughout the pandemic so build one that works for you.
Reducing spending on software packages and other tools can be a great place to start when decreasing your outgoings. Microsoft offers some fantastic services, however, a lot of these can be accessed through Google’s online platforms for a cheaper cost. Using integrations and automations where possible and always searching for the best-priced applications can help keep costs low. Make use of free trials for software before buying as well.
Track your costs
Making note of exactly what you are spending can allow you to see if there is any extra expenditure that can be cut.
This can also help you to plan costs in the future as your business grows.
Plan out exactly what you intend to spend under certain time scales and follow this plan accurately. If you find you are spending more than intended, review your plan and alter it accordingly. Creating an expense spreadsheet will be very helpful in monitoring your budget.
Having a specific business bank account is really important in budgeting, this will ensure that your personal and professional expenditures are not getting mixed up.
You can also use Quickbooks’ Profit & Loss simulator which helps track income and outgoing without affecting the rest of your books on the platform.
Insurance rates change from year to year, so reevaluating these is extremely important when it comes to business budgeting.
It may also be that certain conditions within your business have changed, perhaps you require more coverage - or on the other hand consider less coverage, meaning you are paying for services that you do not require.
Annually reviewing insurance prices could potentially be saving you thousands of pounds.
Save the trees
Reducing paper use is not only great for the environment, but it's also great for your pockets too. While paper may seem like pennies, in the grand scheme of things it can be cutting big chunks out of your budget.
Work digitally where you can, and if you need to print or copy anything make sure to be doing so double-sided. Switching your invoices to paperless is also a great way to minimise your paper use.
Purchasing refurbished furniture and technology can be a great way to keep future spending to a minimum. If you need a new laptop or desk, why not look for something pre-loved or refurbished?
When it comes to technology, you can also look at purchasing older models. In most cases, small businesses do not require the latest models of laptops or phones - in terms of the features that your business needs, the older models of your desired product will usually offer these too.
Just ensure that whenever you are buying second-hand technology, it has been thoroughly tested.
Online marketing can open so many doors for your business,- and is great for those on a low budget. It’s fast-paced with high results and generates more traffic to your website which will in turn produce more customers. Digital marketing can reach such a wide audience compared to traditional marketing.
Email and social media marketing are great ways to keep customers engaged and up-to-date on your business without eating into your spending.
By following these tips and tricks, you may be surprised at just how much you could be saving in your business.