Five ways small businesses can make big savings
If you run your own business and want to try and reduce your monthly outgoings there are a number of ways you can go about it without needing to rethink your entire business model.
Sometimes small changes can have big effects, and because they only require a few tweaks here and there they don’t disrupt the day-to-day running of the company. Here we take a look at five of the easiest ways you can cut costs today and reap the rewards tomorrow.
Assess what your company needs and take action
There is no golden rule to cost cutting that will guarantee big savings for each and every company that follows it. The most important thing any business owner can do is assess their situation and identify the areas where they currently spend unnecessarily and work to taper that in an effective manner.
There are, however, a few areas in which most businesses can certainly work to reduce their outgoings and thereafter reap bigger savings.
1) Travel smart
Travel is often an essential part of running a business, whether it’s attending a conference, visiting clients or simply delivering products. There are various ways you can reduce your travel costs without having to reduce your travel.
Depending on the mode of transport you rely on most heavily – car, plane, train – you can make different kinds of changes. If you frequently need to fly either domestically or internationally, getting a travel credit card can offer great rewards.
Alternatively, if you are mostly nipping around locally, try using a bike for short distances, or using a car-sharing scheme rather than financing your own vehicle.
2) Reduce your supply costs
Running a business requires various administrative items and supplies to be regularly on hand. Careful management and thorough pre-purchase price evaluations can make a big different in the final cost keeping stock.
Wholesale stationary suppliers often add hefty discounts to those making purchases over a certain number of units, so you can plan carefully and simply make one or two big purchases a year.
Alternatively, there a number of online companies who specialize in specific supply areas, such as TonerPartner for printing toner and ink cartridges, offering great deals and quick delivery.
3) Cut down on your electricity bill
Utilities bills are so ubiquitous and regular we often forget that there are a number of ways in which we can reduce them. Shopping around for the best deal is always a good place to start, but there are also various practical things you can do to help lower your bill.
One of the best and easiest places to start is checking what bulbs you are using. Old fashioned iridescent bulbs tend to use far more electricity than modern ones, such as CFL or LED bulbs, without actually offering any great advantage in light emittance.
Always be sure to check the lumens number on the pack to see how much light you are actually going to be receiving for the energy consumption before purchase.
Make sure that you check the competitiveness of your water and gas suppliers too. Deregulation has opened up the market for residential and business utility suppliers.
If you are located in Wales then consider looking at other potential suppliers, Wales & West Utilities provide new gas connections services to the whole of Wales and the South West of England. Swapping suppliers and using energy efficiency can save your business a substantial amount of money over the course of a year.
4) Leverage social media power
Whether you love it or hate it, there’s no denying the power of social media in this day and age. For any small business owner, harnessing the crowd sourcing ability of a social network can mean big savings on marketing and advertising.
As discussed in greater detail in this previous blog post, there are so many advantages to running effective online campaigns can offer – from raising brand awareness to developing closer customer relations. Cancel the ads in your local paper and set up a company profile now!
5) Partner with other businesses
Do you know of other home-run or small businesses in the area who would also like to reduce their costs a little? Why not consider partnering with them so you can split the cost of certain monthly outgoings.
Office space rent, stationary supplies, utilities and vehicle hire can all be shared making the payments cheaper for both parties. You can also even share expertise and skills on different matters, meaning that you are less likely to need to outsource work.
Photo by Crew