Business

How to Meaningfully Reduce the Costs of Your Business

As inflation rises become more inevitable in the coming months, so to do the increase in costs of business. You might be concerned for the future of your business, or you might just be looking for ways to retain your profit margin – either way, here are some handy tips for you to get a leash on your business’ expenditure.

Create a Plan of Action

The first step is to create a plan of action for your business. This might include some key aims for you, whether that is decreasing your overheads by 10%, creating a set amount in company savings per year, or reducing your transportation costs. This plan should also include a budget, specific to the aim of reducing expenditure. Log every utility, every overhead, every business expense and credit note. You may need these later.

Review Your Business’ Space

Is your business using its workspace to the full? Maybe your warehouse space has a fair amount of empty space, or your office a few too many unused desks. Consider the needs of your business and the space you have available. Are there more suitably sized offices available, perhaps in cheaper areas? If moving is not an option, and you have space available, consider letting or sub-letting space to other businesses. Local freelancers might happily pay for their own desk in a fully-serviced office, while a small local wholesaler could use the corner of your warehouse for overflow – providing you with extra income to pad out your savings.

Lower Costs of Transportation

Your company might have a fleet of haulage vehicles or company cars for delivery of goods and raw materials, collections, or sales visits. Take a close look at your employees’ fuel expenditures in the last few months, and consider making the switch away from petrol. A fleet of DS electric cars could save you vast amounts in fuel in the long run, slashing your expenditure in the process.

Slash Your Bills

Chances are that you are paying above the odds for your utilities. Shopping around for better packages to supply your office or warehouse could save you thousands in a year – especially with newer, smaller, clean-energy suppliers offering prices that compete with the Big Six.

Also, it might be a good idea to review your expenditure on office or business supplies. If you have a regular supplier, call up a representative and let them know you are looking for a better deal; you may be able to negotiate a better deal with your current supplier, saving you money and preventing the headache of finding a new one.

Take a Closer Look at Your Financial Costs

Lastly, you may want to look at the state of your finances. If your business’ coffers are stretched over several business accounts, consolidate them into one – this will lower the amount of money you spend on banks’ business rates. You might also be retaining the services of various insurance companies. Now is the time to shop around, and see if you can find similar coverage for a lower price.

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