Running a small business isn’t simple when you’re struggling to keep your business going. However, there are various areas where you can look to cut costs, lower your overhead and still reach your target market while you grow your business.
Employees are essential to getting work done, but employee costs - from salaries to office space to insurance can be the biggest chunk of a small business’s budget. Consider outsourcing work whether it’d be freelancers, renting office space or even outsourcing your telecommunications to a cheaper provider. For example, hire independent contractors for the work that staff cannot cover as needed at a cheaper rate.
2) Hire interns
Going further, try hiring interns to work at your business. By hiring an intern you’re able to employ them at a lower rate than you would a full-time employee. This can help with work-load and also heighten productivity levels in that specific field.
Investigating and profiling different companies can take a long time but with bundling services this will cut down and save time for other important aspects of setting up a business. Having a single provider will make it a lot easy to handle administration such as billing and customer service. There’s convenience in only dealing with one company and there are also relationships that can be festered in only communicating with a single channel.
Furthermore, after successfully bundling your services it will also make it easier to scale your business if you choose to expand your products or business.
4) Adopt cloud services
Cloud-based phone systems are extremely cost-effective to run, especially compared with a traditional phone line. It is estimated to save companies at least 30% on phone bills with most providers offering competitive and cheaper rates along with additional lines.
Moreover, international rates are overwhelmingly cheaper compared to copper traditional lines. This could be a huge area for your small business to cut down on operating costs and save money. In fact, VoIP lines can be acquired at just £9 per line, monthly.
5) Introduce flexible working hours
Going further, allow employees to work from home and embrace telecommuting. Some small businesses are able to fully work remotely without the need for renting office space. For example, incorporating a flexible work from home schedule can lower the chances of an employee calling in sick and you having to pay for a replacement or lose money by not servicing customers.
Furthermore, telecommuting has more benefits than saving money, facilitating work from home can also help improve employee work-life balance and build a happier workplace with research showing that a flexible working policy can have a 63% reduction in absences.
6) Go green
Going green has its environmental benefits but it can also save your small business money. Try and implement cloud networks into your workplace and operate a ‘paperless’ office this reduces the amount of paper waste and other small waste items a business has to purchase for printed documents. Switching to a cloud-based option can cut the purchase of copy paper by at least half over the course of a year.
7) Lower utility costs
Make sure you are reviewing utility costs every year. Nowadays, it’s easy to seek out and gain a better deal on energy, broadband and gas. Ensure that when your business is coming close to a contract renewal you look for other deals on Uswitch, GoCompare or broadbandchoices. By doing this small business can save up to £300 per year.
8) Do business with small business
Furthermore, it would be beneficial to seek out services especially created for small businesses. These companies are normally best to suit your needs and have competitive pricing to help you scale. For example, a bigger company may not be able to offer you discounts and are priced at 'enterprise' level. Find a provider that specialises in your industry or business size to ensure that they understand how to service your business correctly.
9) Get rid of services that your business doesn't use
This may seem obvious but in the age where 'office perks' are worth a lot more as employee benefits your small business could be spending a lot. For example, if you order in coffee for your employees every day in a bid to boost morale or have snacks in the office which no-one takes up this could be an area to save money. Rather than spending on daily perks, turn these into monthly outings or lunches which could help you save.
This can also apply to subscription services such as Prime etc.
10) Review your expenses
Finally, make sure that your business is reviewing all your expenses at least once a year. Clearly keep a spreadsheet of all incoming and outgoings which makes it easy to keep track off and see whether there are areas that you can cut down on. For example, if you’re paying too much for shared offices negotiate a better deal or see if you can down-size.
Above all, a big part of keeping business costs low is picking the right providers, reviewing expenses and making sure that your business is always on the best deal. By following these actionable steps you'll be able to see tangible savings.
Not sure where to start? Contact our team to discuss our low-cost priced packages especially designed and created for small businesses on 0203 697 4166.