Maintaining a tight grip on your business’ cash flow and budgeting is critical to successfully running your small business. Making your clients pay quickly or even on time, is challenging. However, you can bring down your running costs. By examining these costs and taking action, you can make considerable savings on your spending. Here are some ways you can do this:
Switch Your Bank
Banking for small businesses has been revolutionised in recent years. Your business is no longer tethered to traditional high street banks, and their, very often, high banking charges. There are now several challengers to the mainstream banks. These new banking providers give quick and easy access to business banking services, entirely from your phone or tablet.
Ease of access to these bank accounts is excellent, and they also offer you the benefit of reduced banking charges and fees. You will also have access to accounting, invoicing, tax, and payroll features. These features will help you save more money, as you won’t have to pay for services elsewhere.
Seek Alternative Suppliers
When you have an established supplier, it is often challenging to break that relationship and find a new source. Finding a new supplier takes time, and many business owners think it is too much hassle to change. However, sourcing new suppliers can save your business money, and there are plenty of comparison sites to help you make the switch, such as:
- Energy Suppliers – https://www.comparethemarket.com/energy/bus
- Mobile Phones – contracts https://startups.co.uk/best-business-mobile-phone-plans-contracts/
- Business insurance https://www.confused.com/small-business-insurance
- Work Uniforms and Badges – idcardcentre.co.uk/id-card-accessories/Name-Badges
Even if you make a small amount of savings with each of these business expenses, your accumulated savings could be significant every month.
Changing suppliers that you have been with for a while, and with whom you have a good working relationship, can be a challenge. Many people are reluctant to leave a reliable supplier, and if this is the situation you are in, you can still renegotiate your contract with them. It is unlikely that they will want to lose your business, so the chances are that you’ll get a better deal.
Go Green and Save Money
Very often, going green is associated with paying over the odds. However, there are simple measures you can take, that will save you money, as well as improving your green credentials.
- When they are not being used, turn off lights, computers, and other electrical appliances.
- Reduce the amount of paper you use, or eliminate paper use. Only print something when it is necessary.
- Buy recycled or second-hand office furniture.
Introduce Remote Working Practices
Remote working presents your business with some fantastic benefits. Also, employees are expecting much more flexibility from their careers. Introducing remote working practices can provide the following benefits:
- Make employees more productive and engaged.
- Improve employees’ health and well-being.
- Provide a more attractive working environment, luring better or higher skilled staff.
Introducing remote working, even on a limited scale, can realise cost savings in real terms. Less staff on-site means less space is required, less sick days, and less overhead
Outsourcing
It is not always cost-effective to have all of your business operations covered by your employees. Outsourcing is a fantastic way to save money, as you are only spending money on the value you are getting in return. You will also reduce the overhead costs of employing an expert of whom you are not fully utilizing the skills.
Conclusion
If you are a business owner, cutting costs is one way of improving your cash flow. Hopefully, the four methods outlined in this article will help your business cut costs, make more profit, and save money.