8 Top Tips for Saving Your Small Business Money
September 28th, 2016
Britain is a nation of entrepreneurs, with huge numbers of companies starting up every year. At Basepoint, we are always aware of the financial needs of small businesses, and run affordable office centres in many areas of the UK, as well as virtual offices to rent which are ideal for those working from home.
One of the most important financial issues for many small businesses is accessing funding, both for the initial startup and to ensure they can take advantage of opportunities to expand. However, it is also essential to make sure you keep track of spending on everyday operations. Here we share some money-saving ideas.
- Outsourcing and Using Freelances – When a business is young and the budget is tight, you may be reluctant to pay out for services from outside. However, if you and your key staff have to do everything yourselves, this will actually cost you money because of all the time when you won’t be available to concentrate on core activities. Outsourcing areas such as finance and HR to companies which specialise in these areas could be a way to free up your time, resulting in savings.
- Embracing Flexible Working – If some employees work part-time, this can save you money compared to having everyone on your books full time and also help you to have a wider skills base to call on within a small business. Equally, flexible working is often something which staff are enthusiastic about, as it allows them to balance work-life commitments. This means it can increase loyalty, saving money on having to recruit new people as well as meaning you can benefit from experienced staff.
- Using Cloud Technology – Having access to the latest technology can help to save staff time, which again has financial benefits. Investing in a software solution may quickly pay for itself if it means you don’t have to spend a lot of time doing routine tasks, which can instead now be scheduled automatically. It can also save on the need for storage space. In some cases, fully harnessing technology can even mean you don’t need to outsource a function, saving money on an ongoing basis.
- Keeping an Eye on Software Licences – Most businesses today use many different types of software and, if you are busy, it is only too easy just to let all licences be renewed as they fall due. However, it is worth taking the time to examine whether you are still getting value out of all the technological solutions you are signed up to. Do you have too many, and could some services now be duplicating others, or are you even paying for a solution you have stopped using? It could be helpful to look at whether it is possible to replace some services with lower-cost alternatives or integrate or bundle them together.
- Looking at Spending in Detail – Sometimes offices can get into a habit of buying in various items which may not always be needed, ranging from regular stationery orders to supplies of snacks for meetings. It could be a good idea to go through spending in detail every now and again to see where you can buy a cheaper alternative, change suppliers, or even cut out an unnecessary expense completely.
- Making Meetings Leaner – Meetings are still essential to businesses, but the way they are run has changed over recent years. It can use up a lot of resources for a small business if most of your team are in a meeting for much of the day, when it might be equally effective if fewer people attend and then fully brief the others. It can also help if meetings are clearly focused on what they need to achieve and not allowed to run on for too long.
- Collaborating and Bartering – Working and networking together with other small businesses can enable sharing of money-saving tips. Sometimes companies may also be able to join forces to place or fulfil a large order, to financial advantage. Barter type deals, where companies exchange professional services, can potentially also be money savers, provided you have the right safeguards in place.
- Choosing Affordable Office Space – Finding a good business location at a price you can afford is key to the success of small businesses. Many small companies are now choosing to rent serviced offices, because this means they are in a prime location together with others, with a wide range of support services available. Another cost advantage is if you can arrange to rent office space on easy terms and don’t need to be locked in for too long, as at Basepoint business centres. We have modern, affordable office centres in many areas of the UK, including Swindon, Andover and Eastcote.
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