If you’re a small business, reining in your spending can help you on your way to success
Running a small business is no easy feat. There are endless different factors to think about, but undoubtedly one of the most important aspects of any business is its financial performance.
This is particularly difficult when you’re first starting up, as it can take a while to get out of the red and into making some actual profits. One way to speed up this process, however, is to limit your outgoings wherever possible.
You’ll need to invest a lot of time, effort and costs in order to make a success of your brand, but not all spending is necessary. We’re going to take you through a few simple ways to keep your company costs low.
Keep staff turnover as low as possible
For every business, staff is important, but for small businesses in particular every member of your team is someone to value. One of the biggest costs to small businesses is high turnover. Every time a valued member of the team leaves, it’s up to you fill their position again, and this takes time and money. Between posting ads, checking applications and getting through the interview process, there’s a lot to think about, and there will also be an inevitable adjustment period while your new staff gets used to their role.
So keep staff morale high and the incentives frequent, offering flexible work opportunities which suit your staff’s other demands.
Invest only in tech that makes a difference
Technology impacts every aspect of the way businesses work nowadays, so it can be tempting to invest in every possible piece of office tech to make sure you’re covered in all areas. But before you buy, take the time to consider what’s actually necessary to your business.
If all your files are shared digitally, you probably don’t need a printer. If you encourage your staff to bring their own devices, you may not need an individual desktop for every member of your team.
Switch your energy supplier
Monthly costs like utility bills can take a serious cut of your business profits, but nowadays you have freedom of choice. Gone are the days when one utility company supplied energy to everyone in your area. Smart grids and alternative energy sources mean it’s now possible to curate your own supply and choose your priorities.
Every office environment has different things to consider, but don’t just assume that your energy bills are a non-negotiable fee.
Assess your outgoings regularly
One of the simplest and most effective ways to reduce your outgoings is to just keep an eye on them. Knowing how much you are spending and where you are spending it gives you the power to change things if you aren’t completely happy. Look at the people and suppliers you’re paying regularly, such as accountants, tax and legal advice, and decide whether you’re 100% satisfied with their services. It’s never a bad idea to shop around just to see what’s out there.
Promote remote working
The technological transformations of the last two decades have made remote working possible. Thanks to developments like the Cloud, Skype and other sharing and communication platforms, it is no longer necessary to bring all your team members into a designated workspace every day. In fact, avoiding a full time workspace can save you money on rent and utility bills. So don’t be afraid to let your employees work from home from time to time.