1. Have a look at your expenses
The first thing you need is a good idea of what your costs actually are. To do this, make an ongoing list of what you are spending your money on. Some people keep a box of receipts, others write everything down, and others have a dedicated purchase system. Cutting down on your spending on any items on the list could help your business save some money. Be strict with yourself. Do you really need the latest iPhone, or will your old model still do the job?
2. Evaluate your property
Rent, mortgages, leases. Any costs associated with property are unavoidable but they can be more flexible than you think and can be reduced. Contemplate relocating to smaller, cheaper premises, or do you need to stay put? If you rent, research current rental prices for property of your size and location and talk to your landlord, see if there is room for negotiation on your rent before your contract is up. Chances are he’d prefer to negotiate than have an empty property.
3. Talk to your suppliers
Over the years your incumbent suppliers will try and increase their prices gradually for the products you buy from them. Have you reviewed your suppliers? It may be that you can get cheaper prices from new, fresh suppliers you haven’t used or thought of before. Plus if your current supplier is worried about losing your custom, they may even want to reduce their current prices for you. If you value your current suppliers and feel sad to move on, bear in mind – it is business – it is no more disloyal than your existing suppliers charging more than the market rate.
5. Have an in-depth look at your recurring expenses
Whilst things like equipment cost a lot of money, it’s the smaller miscellaneous items which over time accumulate costs and drain your bank account. Monthly charges for business services such as your business telecoms and broadband can be extremely expensive if you are on the wrong tariff for your business. Look for a telecoms provider who only deals with small businesses. Since you can’t stop these costs accumulating, the next step is to think about how you could save on them. It’s the same with utilities, it’s always a good idea to shop around and compare these prices before you sign up for a new contract as you can be locked in for long period. So use comparison sites and brokers like XLN Business Energy who have access to the best deals and can advise you on the cheapest options.
- SMEs: How to weather a recession (xlntelecom.co.uk)
- 10 Ways You Can Cut Your Business Costs (bizsugar.com)
- Penny-pinching in small businesses can be very expensive (onourbikes.com)