Your business costs increase between 10-20% each year, therefore, it’s in your best interests to monitor where cash is being spent and how you can lower your annual expenditure. Paying over the odds on different aspects of the business can certainly eat into your profits and have an impact on your business performance.
If you own a small business and are constantly watching every penny, it’s time to look closely as to how you can cut your spending and control costs. Here are just a few ideas that you may like to keep in mind:
1. Lower your office space costs
Depending on the commercial property costs in your region, you may be paying over the odds on your rental costs. If location isn’t too much of an issue for you, it would be a good idea to move your office to a less expensive part of town, or negotiate with your landlord on how much you’re paying out each month, providing you do so calmly. Or, if you don’t have many employees and you don’t need a huge amount of space, you could cut costs even further by running your business from home or going mobile.
2. Save on bills
Just as you would for your home, you should be paying close attention to how much you’re spending on your business energy bills. Shopping around for the best deals when it comes to electricity, gas and broadband could leave you with more money in your pocket than you anticipated. Price comparison sites such as Utility Bidder allow you to compare business electricity ratings with an array of suppliers, so you know you can be sure you’re getting the very best price available to you.
3. Cut down on staffing costs
If your business has particularly quiet periods, hiring full-time staff members can cause the worry that you’re going to run into financial difficulty. Nowadays, it’s easy to hire freelancers who are happy to work and as when they’re needed and work for other companies in between. Similarly, some employees may also be happy to take unpaid leave to fit around their personal life.
If possible, aim to hire family members to join your workforce, so that you don’t have to pay a wage and instead, split the business profits between you.
It may also be a good idea to advertise work experience opportunities for odd jobs that need completing in the business over a set period, providing you have the correct insurance to do so.
4. Be savvy with advertising
Although advertising is a fundamental aspect of your business’ rate of success, it doesn’t have to be expensive. Gone are the days when physically printed newsletters, posters and fliers brought customers to your door – most of your advertising can be done online for a fraction of the cost. You can build an online presence by creating a Facebook page, tweeting about your company or creating a website that users can visit to find out more about what you do.
Other inexpensive advertising methods including cold calling and asking for referrals.