Whether you are a well-renowned corporate organisation or a new start-up, you may find yourself weighed down by financial troubles. While bankruptcy is something we would all like to avoid, there are some easy and straightforward ways to decrease expenditure and put your business in a stronger financial position.
Decrease office expenses
The main way to decrease costs is to minimise the amount you spend on your office space. Working from home provides a way of decreasing outgoings that you would otherwise spend on rent and bills. Whether you can make working from home your main method of operating or you can offer flexible working for a couple of days a week, it can significantly cut costs.
Flexible work options also benefit your employees. By removing the need to work in an office, you reduce travel expenses, lunch costs, and potentially childcare for those with kids. In a 2017 survey, 29% said they would take a 10-20% decrease in pay for more flexible work options, while 22% said they would be willing to forfeit holiday.
In terms of bills, programmable and smart thermostats help you to be more conscious of the amount you spend each month. Something as simple as changing habits to ensure lights are always switched off when not in use, or keeping doors closed to maximise heating in the colder months, can also go a long way in reducing unnecessary costs.
Assess insurance spending
With your business’ insurance policy, you want to shop around to make sure you are getting the best rate. If you find a better rate elsewhere, you can always ask your current supplier to price match. You also want to check you are not over-insured and therefore spending more than you need to.
It may also be worth looking into whether you can lower your risk and decrease insurance spending that way. Increasing fire safety equipment throughout your workspace is one example of how you can do this.
Focus on free advertising
As opposed to paying for your advertising, there are other methods you can use to get your name out there. Social media and other online content provide a free way of advertising and increasing your customer base.
Blogs and emails are great tools to spread knowledge of your products or services. It means you don’t have to spend ludicrous amounts of money on large advertising campaigns.
Another expense can be if your business requires a lot of products like office supplies or equipment. If this is the case, see if you can negotiate the price you pay for the things you need. With most things being open to negotiation, you may be able to save yourself some money. Going paperless wherever possible also works to reduce spending.
Similarly, if your products or services are in demand, you could look into the option of trading in order to cut costs. For example, if you run a painting business, you could offer to paint the offices of your suppliers in return for a discounted rate.
If you try to plan your schedules to maximise productivity and limit other expenses you could save money. If you have a day full of meetings, try and plan them all around the same area to reduce your travel expenses. Or you can use technology in meetings to solve this issue of travel altogether.
Focus on quality
Put a premium on the quality that you are providing; whether the quality of a product or quality of a service. You can save money by honing in on the things you do really well rather than trying to be a jack-of-all-trades. Customer satisfaction means more repeat customers and referrals through word-of-mouth. If you keep doing what you do best, your reputation increases and you can then look at expanding your services and charging higher prices for what you offer.
There are plenty of ways to minimise your business costs without having to make significant changes to your business operations. By regularly reassessing your outgoings, you can avoid unnecessary or extra costs which could make the difference between your business prospering or becoming bankrupt.
If your business is struggling financially, Irwin Insolvency can help to get you back on track and making a profit. Don’t hesitate to get in touch or call us on 0800 009 3173.