Key Tips To Save Your Business Money For Small Companies

When you have a small business, you will likely be looking for ways to save money.

In many parts of Europe and the UK, it is getting harder for small businesses to make ends meet, meaning that it is worth looking at ways to make every penny count, reducing stress and helping your business to develop.

So, what are some of the best ways to tick all those boxes?

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Outsource the HR

Yes, if you want to save money for your small business, it is worth looking into outsourcing your human resources, or HR.

Why? Well, for one thing, if your business is growing and you need more help with your HR, then outsourcing it can save you the expense of needing to hire an entire HR department. Also, you don’t have to spend money on training staff (or yourself) on how to operate certain HR areas when they are needed, which can be time-consuming, as well as costly.

Lastly, when you hire a professional outsourced HR team, like the HR Dept in Yate, you are ensuring that your business is compliant with the laws in your area. The advantage is that this prevents you from getting fines for non-compliance. So, this can seem costly in the short term, but it can save you a small fortune overall.

Use Technology and Automation

When it comes to being a small business owner, you will likely want to automate as many repetitive tasks as you can. This may include areas like automated invoicing, accounting, expense tracking, and even customer follow-up. If you are looking into marketing and things like email marketing, you can use platforms to automate this, too, meaning that you don’t have to waste time or resources on clicking buttons.

The pay-off is simple. You and your staff will have the time to spend on other parts of the business, such as improving customer experience, customer service, and even exploring joint ventures or partnerships with other businesses.

Of course, it is best to be safe when it comes to saving money. So, before you automate everything, try to automate one part of your business and assess its suitability, and then scale as and when you feel comfortable.

Review and Renegotiate Supplier Contracts

This is not an area that many small business owners are overly eager to take part in, but it can save you a lot of money when you get the knack of it!

You should be regularly reviewing your suppliers’ contracts, as well as the cost of utilities at your place of business, as well as the costs linked to other service providers. If they refuse to renegotiate, shop around!

When looking at suppliers for your business, buying in bulk via consolidating your purchases can unlock discounts, so be sure to investigate this if you can. Many small business owners find it useful to create a contract/supplier review calendar a few times a year to help them keep their prices low. This allows you to pass on savings to your customers, without having to thin your profit margins. So, it’s win-win for everyone!

Reduce Energy and Property Costs

2020 taught many employers that they can have a lot of their staff complete their work from home. Remote or hybrid working is an ideal option (if possible) to reduce rental costs on your business property. Simply put, if you don’t need an office, you don’t need to pay for one, so why bother?

Opting to have more staff work from home will also reduce the cost of utilities and maintenance of any staff building. This, in turn, can also lead you to assess the cost of energy bills that you pay for your place of business. Small business owners can aim to shop around or renegotiate these prices, switch to LED lighting, as well as use smart meters to track the costs of their utilities.

Make Smart Use of Grants and Opt For Second Hand

Depending on where your business is located, it can be worth looking into the grants that your local council offers. Even micro-grants can help you to save money with business costs, as many cover everything from digital upgrades, energy efficiency grants, and even tax reductions for green energy usage. So, it is worth building a local business support network list and checking for grants every quarter.

If possible, for your place of business or work, aim to buy refurbished or second-hand equipment, as, depending on the area you work in, you can save up to 80% on costs, compared to new purchases.

Remember, the options that can help you keep your business costs low and help you save your business money will vary based on what you sell or the services that you offer. If you aren’t sure, it can be worth looking online or asking other traders in your area what has helped them to cut costs.