Here’s how to make your small business more cost-effective
Conduct a detailed expense review
Take a deep dive into your receipts and see if you can spot any non-essential spending. Analyse every item, from fixed costs like rent and utilities to variable costs like materials and marketing. If there’s a cost for something you don’t really need, then why not find an alternative?
You may also find some service costs that you can reduce by automating processes, or delegate tasks more effectively with your current staff.
Become a procurement pro
Are there companies providing you regular services through a contract? Renegotiate, renegotiate and renegotiate! Don’t be shy about looking to change existing contracts with suppliers and service providers. Before going into a conversation with them just make sure you research market rates, find a way to highlight your loyalty, and don’t be afraid to walk away if a better deal presents itself.
Opt for affordable tech
Ditch expensive software licenses and embrace cloud-based solutions. They’re often more affordable, offer automatic updates and are accessible from anywhere, boosting productivity.
You should also explore the wealth of free software options available for tasks like accounting (Zoho Books), project management (Project.co, Monday.com), and marketing (Canva, Google Analytics, etc.). You might be surprised by the quality and functionality on offer for free.
Go energy-efficient
It’s not just good for the environment, energy-saving measures like using LED lights, turning off equipment when not in use and optimising heating systems, can save you lots of money. You might also wish to consider renewable energy options – commercial heat pumps, for example, come with lower maintenance costs and longer life spans, all while reducing your electricity bills.
Optimise your workforce
Consider cross-training your employees which will increase business agility and reduce reliance on external expertise. And for flexible project work or seasonal needs, consider hiring freelancers or part-time staff instead of full-time employees.
Explore available tax reliefs
Finally, don’t forget to explore available tax reliefs!
You can, for example, claim capital allowances if you buy assets that you keep to use in your business. There are also tax-deductible expenses across a wide range of categories, including office supplies, vehicle fuel and marketing costs.
You might also qualify for small-business rate relief on your property if your property’s rateable value is less than £15k and your business only uses one property.
