The economy is placing small and medium-sized businesses under pressure that many have never faced before. Budgets are pinched to the point that businesses can barely stay afloat, let alone invest in growth. To navigate their way out of the fog, businesses need to find creative ways to protect their margins and keep cash flow in a healthy state. Of course, even relatively healthy businesses can always benefit from extra savings, so it is always worth reassessing the budget to ensure money is not being wasted. To keep your organization afloat during difficult times, here are four ways to save your business money.
- Move to cost-effective premises
It is likely that one of your largest expenses is the rent you pay on your premises as well as the costs of running and maintaining them. Many people are choosing to work from home on at least a part-time basis, and if this is the case for your employees, it may be worth considering a change. Why pay for offices that are hardly used when you can rent office space by the hour or day as needed? Visit www.thebrew.co.uk for more information. Alternatively, if you own your premises, consider subletting space to another business to increase your income.
- Consider leasing assets rather than purchasing
Buying assets for your company such as machinery, vehicles, furniture, or technology by taking cash from the business is not always the most cost-effective decision, especially if the assets will depreciate in value. Another option is to lease assets, i.e., to pay a monthly or quarterly amount to use the assets for the period of the agreement. Once the agreement is finished, you can either make a final payment to take ownership or return the assets. In some cases, you can also upgrade the assets during the lease to ensure you always have the latest versions. Asset finance spreads the cost over time, enabling you to keep your cash and unlock significant tax benefits.
- Outsource tasks rather than hire new staff
Hiring staff can be costly, but if you are currently trying to manage lots of areas of the business, you could also be wasting a lot of your time and money. A potential solution to this is to outsource certain tasks to external freelancers or companies that specialize in those areas. Commonly outsourced areas include marketing and social media, accounting, or HR. You may be paying them a relatively high hourly rate, but as they will not be working full-time hours and you are not their employer, you should save money.
- Negotiate prices
Most businesses will pay suppliers and service providers for something, whether it is for internet, utilities, subscriptions, or even cleaning services for an office. Make a list of all the services and subscriptions you pay for each month and investigate whether you could reduce the costs. You might have to wait until your current contract is finished, but in some cases, simply requesting a better deal can be enough to convince a supplier to offer a discount rather than lose your business.