As a small business owner, there are so many things that you need to think about when you’re getting started, and it’s easy to feel overwhelmed. We’ve already put together a guide to financing a startup business, but today, we’re taking a look at some of the ways that you can cut costs and improve your company’s bottom line, no matter how long it’s been running.
Outsource some tasks
Do you really need a cleaner, a security guard, and a maintenance team on hand full-time when you could instead outsource those tasks and responsibilities to an FM provider? It’s so important to understand the actual needs of your business and make adjustments to your operations accordingly. Lowering your overall staffing spend not only saves money on wages, holidays, and admin, but it reduces your company’s overall burden and potential risk.
Say goodbye to extras
It’s all well and good offering employees extras like free insurance and unlimited paid holidays, but you must be sure that they’re delivering a return on their investment. Review your current bonuses, benefits, and extras and look to make savings. Even removing the premium coffee machine from the canteen and switching to a cheaper product can save hundreds of pounds over the year, helping to increase profitability; don’t be afraid of doing so. On the other hand, think about employee morale and don’t cut costs for the sake of it.
Look to reduce waste
How much are you wasting as a company? Retailers should try to limit the waste of products, eCommerce businesses should try to limit returns, and office-based businesses should cut unnecessary spending on lunches and entertainment. Think about ways that you can “trim the fat” and ensure the core business can operate with minimal waste. Things as simple as switching from physical invoices to email invoices can save money over the year on printing and postage costs – digitising your business in this way can boost your margins.
Go remote for good
The COVID-19 pandemic has proven that most businesses can adapt and work remotely for extended periods of time. Although there are indeed benefits to working from the same office or premises, the truth is that rising rent costs have forced many businesses out of the city, and some won’t ever go back. Even major organizations like Twitter have said that their staff can work remotely permanently if they so wish – doing the same could lower your operating costs and allow you to streamline your business. Weigh up the pros and cons of doing so.
Do you have any other cost-cutting tips? Let us know and check back to the Minding Your Money blog soon for more advice on creating a profitable and successful business.