The primary goal of every business is to make money. Unfortunately, too many overheads can detract from a company’s net profit. To help you create a profitable enterprise, read our helpful advice on how to save your business money.
Employee Costs
The first quarter of a year can determine a company’s finances, as many employees will find new positions, or the business might require new talent. However, never rush into making a big employment decision. For example, if an employee leaves the business, don’t be tempted to immediately find a replacement. Delay the recruitment process, as a more ambitious member of staff, might be eager to pick up their duties, or you might discover their role is not as essential as you initially thought. If someone fails to fill their gap, you’ll have saved the company money in the meantime.
Find a Good Business Mobile Phone Tariff
Do you provide your employees with a corporate mobile phone? If so, you should regularly review the providers and contracts to ensure you receive the best deal for your business needs and budget. Use a mobile phone comparison service to compare phones and deals, which could save your company a considerable amount of money each year, without compromising on your business productivity.
Reduce Energy Usage
According to the Carbon Trust, British companies could save an incredible £300m each year by actively reducing their energy consumption. It’s therefore important to encourage employees to become more energy conscious. For example, request that all members of staff shut down their computers when they are not in use. Also, switch to LED lighting, which can save you a considerable amount of money over the years and are worth the initial investment.
The same energy principles should also apply to heating. Save both money and energy by only heating parts of the office to keep employees warm in the workplace, and reduce the temperature during the evenings and weekends.
Use Specialists to Chase Debt
Are you constantly chasing late payments from customers or clients? Not only can this drain a considerable amount of your business resources, but it can also cause a company to fall into its overdraft, which can affect a business owner’s credit rating. Take the burden away from the business by outsourcing a specialist to chase debt or account. They will manage and handle easily all your account work. To find an expert small business account visit website. As a result, you can focus on other aspects of the business, while the experts will quickly recover the money owed to your company.
Renegotiate with Suppliers
Have you been using the same suppliers for a long period of time? Use your loyalty by renegotiating a new deal with your suppliers. For example, you could request a discount on future purchases, which could help you create a healthy annual profit margin.
Suspend Purchases for One Month
Suspend purchases for one month out of a year to utilise your existing stock and reduce your overheads. For example, banning stationery purchases could prevent buying unnecessary supplies, which would otherwise eat away at your bottom-line, as you can guarantee members of staff will be storing away significant office supplies in their drawers.
