For the majority of small business owners in the UK, cutting costs is a big priority. Businesses are more prone to failure within their first year of operations, and a large factor in many of these failures is overspending. It might be tempting to splash out on that nice office, hire the best staff, or splurge on more comfortable office chairs – especially if you’ve just secured business funding – but it’s more important to spend the money that you have wisely until your business is more secure. Monthly expenses are likely to make up a rather large chunk of what you spend on your business, and scaling these costs back frees up more capital to invest in revenue-generating features such as equipment or inventory.
Downgrade the Office
If you’re working from an office space, consider if you can move to a different location at a lower cost. A city-center office might not be essential if you are not inviting clients into the office on a daily basis and only really need a workspace for yourself and a handful of staff members. It may be more cost-effective to move to an office on the outskirts of town with cheaper rental costs while still being close enough for employees to commute and clients to visit.
Switch Energy Providers
The cost of energy is always subject to constant fluctuations and just like at home, you might find that the best deal for your business is different month by month. Spending some time regularly checking comparison sites for business gas prices and electricity rates will help you ensure that you are always on the best tariff and not paying more than you need to for the energy that your business uses.
On the subject of energy, your company may be spending more than it needs to be due to energy wastage. Even simple oversights like leaving a light on for the day in an unused room can easily add up to wasting hundreds of pounds on energy per year that you could have saved and invested elsewhere. Getting everybody into the habit of saving energy as much as possible is crucial; small steps like switching off lights, opening windows instead of using air-conditioning where possible, and keeping windows closed when the central heating is on will go a long way in helping you save money over time.
Work with Freelancers
While working with freelancers doesn’t mean laying all your employees off, wherever possible in the future, consider the option of working with a freelancer rather than hiring an employee if you can. You can hire freelancers for a wide range of tasks such as admin, social media management, content creation, accounting, HR, and even some aspects of marketing, sales, and customer service rather than taking on a full-time employee and all the associated costs. In addition, many freelancers work remotely so you will be able to expand your business without the need to spend more on upgraded office space.
If cutting costs is vital to the success of your small business, these four simple steps can help you slash monthly company expenses.