How to save as a business
Knowing how to save as a business is particularly important when you’re just starting out and finances are tight. We reveal ten money-saving tips that can boost your company’s financial efficiency.
Finding ways to save is essential for your company’s long-term success. After all, you need to ensure you have enough money to cover essential bills, pay staff and invest in new equipment. That’s where these ten top money-saving tips for businesses come in. Read on to discover how you can run your business for less.
Why should a business save?
There are many reasons why your business should save. For a start, it can help you cover unexpected bills and expenses. Boosting your savings and putting money into business savings account also means you have funds if you want to expand your business, buy other premises or launch new products. If you have enough put by, you can hire more staff, pay for an advisor or invest in more modern equipment to improve efficiency.
Read more:
Earn extra interest on your business savings.
Top tips to help a business save money
Without sufficient savings, your business might struggle to survive, so it’s essential to know where you can cut costs.
Below, we’ve outlined some tips to help your business save money:
1. Regularly review subscriptions
It’s easy to forget exactly how much you’re spending on subscriptions. Make sure you go through your bank statements regularly to remind yourself of what you’re paying for and cancel any contracts you no longer need. Good examples include magazine or software subscriptions.
2. Get a better deal
It pays to renegotiate contracts where you can. Call your energy or broadband provider to see if you can get a cheaper tariff. If you rent equipment, contact the supplier and haggle for a reduced price.
You won’t be successful every time, but even a small discount can help you save, so it’s worth trying.
3. Work to retain staff
Hiring and training new staff costs money, so take steps to retain the staff you already have. Make sure you’re recruiting the right people for the job and then offer the right benefits and incentives to keep them in place.
You might need to offer more company perks, personal development opportunities or make the office a better place to work. It costs money to do this, but it’s cheaper than continually finding new staff and starting from scratch.
4. Cut energy costs
Switching to a cheaper energy tariff is one way to reduce your energy bills, but there are other steps you can take too. These include turning off lights and appliances when you leave work, ensuring your business is fully insulated, and buying energy-efficient equipment.
You can also install a programmable thermostat to automatically regulate the temperature at your premises. For example, you could set it to come on before staff arrive each morning and to go off after everyone has gone home for the day.
5. Get savvy with your accounting
Hiring a good accountant could save you money by helping your business to become more tax-efficient and avoid penalties by filing your tax returns on time. Your accountant might also offer invaluable business advice to help your operation run more efficiently.
6. Buy in bulk
You can often get a discount if you buy certain items in bulk, and you should save on shipping fees too. Items to buy in bulk include stationery or bathroom supplies, as well as more expensive items such as software and business laptops.
7. Sell what you don’t need
If you have any business equipment you no longer need, sell it to earn a little extra cash. This can include unwanted desks, chairs, computers, printers or phones. Selling unwanted items has the added benefit of freeing up space in your office or workspace.
8. Get a better business bank account
Different business bank accounts charge different fees, so it’s worth checking whether you could save money by switching to a better account.
For example, if your business carries out a lot of transactions and your account works on a pay-as-you-go basis (where you pay per transaction), it could be cheaper to switch to an account that charges a monthly fee but offers unlimited free banking transactions in return.
Alternatively, if your business account waived monthly fees for the first year and that time is now up, it could be worth moving elsewhere.
Read more: Your guide to business bank account monthly fees
9. Buy second hand
You don’t need to buy everything for your business brand new. An easy way to save money is to look for second-hand items on sites such as Facebook Marketplace, eBay and Gumtree. Be sure to read the description carefully, however, and remember to factor in shipping costs where necessary.
If you’re investing in electronic items, buying refurbished versions can also be much cheaper.
10. Carry out regular inventory checks
It’s easy to overlook the need for regular inventory checks. By keeping track of inventory levels, you can avoid overstocking items that you aren’t selling or using. Thereby reducing costs and saving cash.
FAQs
What costs can a business cut back on?
There are several ways a business can make cutbacks. Going through your bank statements regularly can ensure you are not paying for a subscription you no longer need. You could also negotiate with suppliers to see if you can get a better deal or switch to a cheaper broadband or energy deal. Another option is to consider using part-time staff or freelancers rather than hiring people on a full-time basis.
Should I switch to remote working?
Since the COVID-19 pandemic, more and more people are working from home. If your business could go fully remote and still deliver the same high-quality service, it may be worth transitioning to this style of working. A remote workforce means you can save money on rent, utility bills and other costs associated with a business premises.