From tech investments to staff training, running a business can be costly, but there are steps you can take to rein in your spending
Taking the plunge and starting your own business takes a lot of guts and a lot of planning. Every business owner wants their business to go from strength to strength but, in order to do that, you need to stay on top of not only how much money you’re bringing in, but how much you’re letting go out the door, too.
With that in mind, here are five ways to spend less in your organisation without sacrificing productivity or quality.
Focus on staff retention
Staff members are the cogs that keep your business wheels moving. Every member of your team is someone to value and brings something to the table.
One of the biggest costs to small businesses is staff turnover. Every time a member of the team leaves, it’s your responsibility to fill their position again, and this takes time and money. Between posting advertisements, checking applications, recruiter fees, getting through the interview process and forking out for any training, there’s a lot to consider. You’ll also have to allow them an inevitable adjustment period while they get used to their role.
By keeping staff morale high and incentives frequent, you can help to cultivate a positive, happy workplace for all members of your team. Ensuring that communications channels are open and that you are always receptive to feedback can be important – because staff like to feel that they are being heard and that their opinions are valued.
Elsewhere, why not aim to offer flexible work opportunities that suit your staff, particularly when it comes to accommodating childcare.
Invest in the right tech
Today, technology impacts every aspect of the modern business. There’s a pressure to invest in every possible piece of office tech so you can boast digital superiority, but it’s smarter to start by considering what you actually need.
If all your files are shared digitally, you probably don’t need multiple printers. If you encourage your staff to bring their own devices, you may not need to furnish every individual with a desktop computer. Once you’re up and running, you can start to expand your digital assets over time.
Similarly, when it comes to software, look for options that are easily scalable. For example, Microsoft’s Office 365 suite can be tailored to the size of your team with licences to suit organisations of all sizes. Should your team grow quickly or even contract, you can amend your contract at short notice so that money isn’t wasted.
Seek out cost-effective business energy deals
Business gas and electricity bills can take a serious cut of your profits, so choosing the right provider is essential. 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.
Keep on top of your outgoings
An important part of reducing your business outgoings is simply to keep an eye on them. Knowing how much you are spending, and where you are spending it, provides you with the power to change things if you aren’t completely happy. Look at the people and suppliers you’re paying regularly and decide whether you’re 100% satisfied with their services. This includes accountants, subcontractors, solicitors and even cleaners. It’s never a bad idea to shop around.
Consider remote working
Remote working has become possible in the last few years, and commonplace since the COVID-19 outbreak. Thanks to technological advances like cloud computing, video conferencing tools like Zoom and other communications and project management platforms, it is no longer necessary to bring all your team members into a designated workspace every day. 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 when it suits.
The team at TEDCO Business Support have helped thousands of businesses find their feet, supported by ERDF, with many flexible support methods on-hand to help you achieve your goals. If you need help to get your business off the ground, get in touch with our team today by calling 0191 516 61 02 or email us your question.