Funding Bay champions SMEs across the country. We value that they are the important makeup of our economy, and therefore strive to help them as much as we can. The past year has been particularly tough for small businesses, however, in 2020 there was a record 5.9 million new businesses registered in the UK.
Keeping your business alive involves saving money wherever you can. You have to take a look at how you run your company, what decisions you make, and then try to slash costs wherever you can. It’s pretty tricky, but there are things you can do to make it easier.
Saving money as a small business requires you to be meticulous, to be on the ball, and to look at all the different tactics that are available to you. Let’s take a look at some of them, so you know what it is you should be doing.
- Outsourcing
Outsourcing is one of the best ways to keep costs low. Hiring employees can be an expensive process. It’s not just about the salary, so you can outsource quite a few different things in order to make sure that you keep your costs at the lowest point. Digital marketing, social media marketing, advertising, bookkeeping, and a variety of other common office jobs can all be outsourced, which means you get access to expert quality without having to train anybody, and with less costs.
- Negotiations
Don’t hesitate to negotiate with any of your vendors to try and get better costs on your business expenses. It’ll help you, in the long run, to successfully get the best deals. This might include haggling with your landlord, or coming up with a deal that best suits your business’s needs.
- Cloud Storage
Don’t bother spending money on hard drives, use cloud-based storage systems instead. These will help to protect you from losing your data completely, and they’re cheaper than physical options.
- Remote Working Solutions
Remote working is one of the best, cheapest ways to make sure that you can cut costs. When you don’t have to pay a lot of the physical costs associated with keeping staff, your business becomes a lot cheaper to run.
- Hire Young and Train
If you want to cut costs, hire people who don’t have a lot of experience and make an investment in training them. Trying to hire professionals from the outset will cost you more.
- Advertise Tactically
There are multiple ways that you can advertise to get your small business off the ground that don’t involve a lot of money. Go to networking events, hand out free samples in the local area, and generally connect with your target audience.
7. Check All Your Costs
When it comes to trying to save money, a lot of people don’t actually check to see if they’re even doing things in the right way when it comes to costs. Make sure that you don’t spend too much on the small things, and look at all of your business expenditures.
8. Bulk Buy
Bulk buy a lot of your common resources to save money in the office. You’ll cut a good deal and be able to save some cash at the same time.
9. Cut Maintenance
If you can possibly cut down on the amount of maintenance you need each week in terms of cleaning and basic recycling processes, you definitely should. Try to encourage your staff to be clean and tidy with their workspace as well.
10. Shorter Working Hours
The four day week really is coming into popularity now, as more and more businesses are starting to see a rise in productivity as a result of a shorter working day. If you can get in on this particular hype train, you definitely should, as there are marked improvements to be had in productivity and workplace satisfaction.
Final Thoughts
Cutting costs as a small business is not easy. However, it’s definitely possible if you take the time to experiment with a broad selection of different offerings, and then take a look at what you can do when it comes to everyday activities.
The end goal is all about saving as much money as possible, so this requires you to be precise, sensible, and to think logically about the things that you are spending money on. If you can slash costs, it’s definitely worth doing, because this will help your business to thrive and grow a lot faster.
If you are in need of some additional working capital in order to release pressure from your business, then you might want to consider a business loan. Get in contact with the team at Funding Bay, and we can provide you with a free consultation, about what the best options for your business may be.
Get in contact here.
