There are certain things you absolutely must bay for when running a business, but this isn’t an excuse to be overly exuberant. In this climate of financial instability it is prudent to cut down all areas of over expense and save money to be applied to other areas of the business which may need it more. Cash reserves can be useful for future issues, so there is really no excuse not to try your best to save your business money that it may need in the future.
Consider Switching Your Business Line Rental
You see the adverts for switching on TV all the time. But there really is no difference between switching at home and in your business, apart from the fact that you could save a way more money. You should consider Leased Line Comparison, who will compare all providers and save you money. Think about doing this once a year to ensure you get the best deals. Usually companies will give you a great introductory offer to get you on board and then drastically increase their prices. You can negate this by switching at the end of each contract. You could potentially save thousands which could be poured back into the business and develop new areas resulting in profit. It is worth doing, just to see where how much you could potentially save. Don’t forget to haggle too, these businesses want you to work with them, so see what more they can offer.
Double Check Your Labour Costs
If you actually check what your staff are doing they may not be too productive. This could be a result in over labour. During these times it can be prudent to ask if anyone wants unpaid leave. There will usually be one or two people who will jump at the chance for time off, even when it isn’t paid. This will reduce some labour costs and allow you to not overspend. If the situation is dire then you may have to consider redundancies, a horrible task but one that needs to be completed if you are to put your business first. You may be able to ask people to permanently reduce their hours to semi-part time too. This way they can work more when you need them to instead of all the time.
Call Your Suppliers
They come in all shapes and forms. Whether they supply office equipment, materials from which you create a product or raw food, when you’ve been with them for long enough you can get a reduction. Usually new businesses are ripped off. It’s a sad truth. But after around six months of trading when the suppliers can see you are profitable and running a steady business, they’ll take you more seriously. Call each one and tell them you want better rates. Some may refuse, and then you should contact competitors who may offer a better deal. You be be able to save thousands on a year by year basis if you manage to haggle a better price.