Saving costs will always be top of the agenda for any small business. With supplier costs and company overheads going up, business owners will be looking at where they can save costs. Whether you are a small independent business or a larger company, reducing your costs will ensure that your business operates efficiently. The following list highlights some ways your business can save money with little effort.
Staff costs are the biggest cost to most businesses. From recruitment fees, holiday, employee benefits to paid sickness, the cost of labour can be a challenge for any business. One tip can be not to replace employees who leave but instead replace with part-time or zero hour contracts which can provide an opportunity to reduce labour during quiet periods which would otherwise not be possible with a full time employee. Using short term or temporary contracts can also be another way to reduce labour costs. Having a DIY ethos within your business can also be another opportunity to reduce costs. Not having a PA or not filling other roles can also be a great way to save on labour cost. Multi-skilling of staff is also a great way to reduce staffing costs by having staff who can operate across various roles.
Agency costs can be a big expense so why not employ casual labour on zero hour contracts such as students. This way you can call on them when required without having to employ them full time. Though zero hour contracts may be scrutinized, they can benefit both the employee and the employer.
1. Money Saving Tips – Saving on power costs
Company overheads such as utilities are another big cost to small businesses. Though employees are conscious about saving energy at home, this is less important to them at work. It is good practice for companies to have energy saving policies at work for staff to follow. Quality management systems such as ISO 9001 and 14001 cover environmental policies and can be a great way to promote energy saving and protection of the environment in the workplace. Having good working practices such as encouraging employees to switch of computers when not in use, switching off lights and keeping doors shut to conserve heat.
2. Money Saving Tips – Review supplier costs regularly
Reviewing supplier costs regularly can be another way to reduce costs. Compare suppliers and don’t be afraid to switch suppliers if you can get a better deal. Reducing product costs could have a massive impact on your profit. Having limited deliveries per week can help reduce distribution costs. Ordering in bulk should also help you negotiate a cheaper price per product.
3. Money Saving Tips – Review spending on sundry costs
The amount of money wasted on supplies such as stationary, marketing, uniform, cleaning products, disposables or other costs can be quite significant. Review spending and look areas where you can reduce unnecessary costs. Review the amount of money spent on stationary such as paper and print cartridges. Have a printing policy for essential documents only. Suspend purchasing on certain sundry items that are not necessary. Another useful way to reduce costs can be buying uniform instead of hiring the services of a laundry company. Encourage staff to wash and launder their own uniform.