How to Cut Costs in Your Business without Affecting Operations
To weather different trading conditions that all UK businesses must face successfully to survive, it’s necessary to be prudent about spending and cutting costs wherever possible. Doing this is tricky without frugal spending turning into something that affects the operational efficiency of the company overall.
Here are a few ways to cut costs while the business hums along nicely.
Renegotiate Business Electrical Services
It’s fairly common that services costs are higher purely because they’re for business use. This is seen with telecommunications and sometimes with energy suppliers too. There’s not necessarily any fair or logical reason for this either.
It is useful to look for more competitive prices through several business electricity suppliers to deal with this reality and get a better deal. When using a site like Utility Bidder that can find the best energy deal for a business, the total cost of business electricity can be cut significantly. And all this without causing any business disruption too.
Centralise Ordering Processes
While it’s standard practice with a large business, most small sized companies have tended to grow from a handful of people to tens or hundreds of employees over the years. As a result, ad hoc processes rarely become more business-like, such as ordering getting centralised.
When centralising orders, preferential deals can be secured with a single large B2B supplier of regular business goods. This can be anything from desks to chairs to envelopes and paper clips. Substantial discounts are made possible by pooling requirements instead of using multiple suppliers in an unplanned manner. Sometimes, early settlement of invoices also offers a few percentage points off the order value.
Review Subscriptions and Other Services for Cancellation
While this current push for the Software-as-a-Service model , where everything a business needs is being rented as a subscription is popular, that doesn’t necessarily mean it’s cheaper. It can end up with a company paying for many yearly or monthly subscriptions with overlapping services or some which aren’t required any longer.
It’s useful to review all the current subscriptions to determine whether there’s a more economical way to go about it. In some cases, a few of the services will no longer be needed. In others, some consolidation is in order. Services being paid for monthly might benefit from switching to a yearly model. Also, downgrading a subscription tier might still provide enough features for what’s required now.
Outsource Tasks to Reduce Payroll
For growing companies that are concerned about payroll increases, outsourcing some tasks to freelancers or a remote worker is going to save money vs taking another full-time person on. Also, a part-time worker might be sufficient rather than having someone who’s too idle.
Also, consider using remote workers or freelancers to avoid needing to move to a larger office when things start to get a bit too cramped. The cost savings from running a hybrid employee/remote/freelancer setup will be considerable. If key personnel are still in-house, then it won’t hurt operations at all.
When making changes, always consider whether the action will save money or hurt how the business runs day to day. When there’s no noticeable issue with it, then the cost cutting is likely a prudent move.