For myriad reasons, small businesses up and down the UK have their sights set on significant cost cuts 2020. Cutting costs on saving money as a small business can be challenging, given how you’re probably dealing with limited income and cash flow in the first place.
Still, bringing costs under control is always possible with a little innovation and creative thinking. Each of the following having proven useful for small businesses and start-ups in the past, where tightening the purse strings is a priority:
- Go green by improving your recycling and reusage policies to avoid unnecessary waste around the office.
- Consider cloud computing as an alternative to purchasing and operating your own dedicated computer hardware and software.
- Buy second-hand office equipment and post-leasing devices to save a small fortune on equipment costs.
- Consider fuel cards for your business vehicles and drivers, using an independent comparison site such as icompario to find the best deals.
- Allow employees to work from home where possible, which will help you make significant savings on overheads long-term.
- Join forces with other businesses on marketing and promotional strategies, finding creative ways of helping each other out.
- Don’t cut corners on staff quality as to do so is to run the risk of jeopardising your company’s financial performance.
- Consider outsourcing tasks that do not need to be handled in-house, such as web marketing and SEO.
- Use accountancy software rather than hiring an accountant, if your business accounts are not particularly complex.
- Don’t travel unnecessarily, as it may be possible to organise meetings, conferences and general conversations remotely.
- Reconsider your supply chain options on a regular basis, ensuring your suppliers and service providers are genuinely cost effective.
- Use free online channels like social media to promote your business in-house, rather than paying others to do it for you.
- Don’t be afraid to ask for discounts when purchasing anything for your business – there’s no harm in asking and they might say yes!
- Evaluate leasing options as an alternative to purchasing equipment outright, which may prove more cost-effective for your business.
- Make every effort to go paperless and reduce your consumption of consumables in general, which can become expensive over time.
- Consider hiring interns and students in need of work experience, who will happily work for little to nothing in return for a good reference.
- Negotiate with your landlord on a regular basis and keep your eyes peeled for a better deal as a bartering chip.
- Switch to online training and development programs for your employees, rather than paying for external trainers to run workshops.
- Relocate to a cheaper postcode if your business operates primarily online, as it really doesn’t matter where it is headquartered.
- Don’t forget to declare all business expenses appropriately on your tax return, rather than throwing good money down the drain.
20 simple yet effective tips for cutting small business expenses in 2020, which could hold the key to reducing your outgoings and boosting your profits.