These days, it’s particularly important for business owners to find ways to keep their expenses down, particularly as inflation pushes up the price of goods and services.
To help you reduce the monthly running costs of your business, here are some top tips and tricks that should provide you with a welcome financial buffer and give your business the best chance of weathering the current cost of living crisis.
5 Clever Ways to Reduce Business Running Costs
1. Save Money On Your Office Supplies
If your company uses up substantial amounts of office supplies like printer ink and toner on a regular basis, then you’re probably keen to find ways to lower the expense. In particular, printer ink from original manufacturers is notoriously pricey, commanding a higher price tag than luxury perfume or top-of-the-range champagne.
The good news is that you don’t have to purchase original ink and toner cartridges from the big-name original manufacturers as – provided you choose supplies from reputable suppliers – third-party versions will work just as well.
For example, you can purchase effective alternative toner cartridges from Cartridge Save for a fraction of the price, and they even come with a three-year warranty.
2. Give Bartering A Try
The barter system may seem like a relic of medieval times but it’s actually a highly effective business practice that is still being maintained to this day across the UK. As the cost of living crisis drags on, it provides a helpful solution for small businesses in particular, which may not have as many financial resources to draw upon in trickier times.
As you may imagine, the barter system is relatively straightforward. If you need a particular product or service from another company, you offer them something of your own that they also require in return. Over time, the more you do this, the more bartering partners you will acquire; before you know it, you will have your own personalised network that you can rely on whenever you – or they – need a specific resource.
3. Be Selective With Your Staffing
If your business is going through a difficult period, then there may come a time when you need to make the hard decision to reduce your staff. Paying a full salary for employed workers may not be feasible for your business at the moment, as you work to get your enterprise back on its feet.
Instead, it may be necessary to offer part-time positions to your current team – or to find freelance professionals who can undertake important tasks for you on an ad hoc basis.
Alternatively, you may want to think about keeping on your current staff but downsizing your company premises instead. You may even consider implementing a remote working model if this would be feasible for your particular type of business. Removing the sizeable financial commitment of a commercial property lease from the equation can free up significant funds to channel into other areas of the business.
4. Market Your Business Online Only
Marketing can be one of the most expensive aspects of running a business, particularly if you opt for physical marketing options such as print or radio advertising. This potentially substantial cost is also unnecessary, to a large extent, as an effective online marketing campaign can raise awareness of your brand – without costing you a penny.
All you need to do to spread the word about your business and what it has to offer is to create some dedicated social media accounts for your company and use them to engage with potential and existing customers. Using social media is one of the most convenient and effective ways to draw attention to your products or services, as well as to highlight any sales, discounts, or special events that you may be holding.
You can also use email marketing campaigns to supplement your social media advertising. Email marketing remains a highly viable form of marketing, offering an average ROI of 42:1. In fact, almost 80% of marketers in the UK find it to be a “critical” element of their marketing strategy.
5. Look For The Most Competitive Rates
Business expenses, such as business insurance, or a mortgage on a commercial property, can eat through your business account. You may also be paying more than necessary, which is why it’s important to compare rates and find the most competitive. If you think your current lender or provider is overcharging you, then it may be in your best interests to switch.
6. Don’t Click On Automatic Renewal
Last but not least, if you signed up for some subscription services when you first opened your business – for example, for different types of software to help with the daily running of your venture – it may be a good idea to make sure you don’t check the ‘automatic renewal’ option.
After all, you may find that a particular service is no longer necessary after a while, or you could be taken by surprise by a bill that you had forgotten was going to be taken from your account.
By only renewing a subscription when you need it, you can help to avoid any unnecessary payments, which will help to keep your overall running costs down.