It’s a difficult time for small businesses across the country, with a reported four in five small business owners worried about the impact the cost of living crisis will have on their finances.
In increasingly difficult times for small businesses, every penny counts. In order to help small businesses to make savings, Stuart Deavall from TonerGiant has shared eight areas where costs could be cut back.
With rising costs, it’s important to assess your business’ outgoings to see where savings can be made, including in areas you may not have considered before. By following these tips, you could save your small business an estimated £500 per month.
- Reduce your printing costs
“There are many things you can do to reduce your printing costs. Setting your printer to draft mode means that it will use a fraction of the ink required when higher quality settings are enabled. This makes printing not only cheaper but also quicker too.”
“Also, consider which font you’re using. Opting for Times New Roman instead of Arial could save you around 10% on costing prints. Reduce your font size, avoid using the bold feature where you can, and do not print in colour unnecessarily.”
“To be resourceful with the amount of paper you’re using, make the page margins smaller and consider printing on both sides of the page. Be sure to use the preview function to ensure you aren’t printing documents that you will need to print again, if they’re in the wrong format. Save high-quality paper for external documents and use cheaper lower-grade paper for internal printing.”
“Investing in a more energy efficient printer is a wise idea as it will not only directly save you money, but also improve employee productivity as less time will be spent waiting for documents.”
- Outsource work to save on the cost of a permanent hire
“Don’t be afraid to outsource work to save on the cost of hiring a permanent employee. This way, you will still have the same level of professional service and you can focus on the areas of the business that you enjoy.”
- Contact your energy supplier for a subsidy on energy efficient appliances
“If you have an office, there are ways that you can reduce how much electricity and gas you are using. For instance, you can: switch off computers and appliances if you aren’t using them overnight, use energy efficient lightbulbs, only use as much hot water as you need and be attentive to fixing any leaks, as well as ensuring that your premises is insulated against drafts. Many energy companies will also provide subsidies on the upfront costs for more energy efficient equipment, which should help you with costs in the long-run.”
“Contact your supplier if you are concerned about paying your business energy bills. They may be able to work on a new agreement with you, whereby you can afford to make payments more easily. For instance, you can ask for payment breaks or reductions, more time to pay and access to hardship funds.”
“Be sure to ask about a smart meter, if you aren’t already using one. This way, you won’t have to pay more than you should be, as these readings are estimations.”
- Join a co-working space
“For many office-based small businesses, a coworking space can help you to save on the cost of rent, furniture and utilities. You will no longer need to waste money on unused meeting rooms and can instead quickly expand or downsize your office in order to meet the needs of your business.
“Try to sell anything from your office that you no longer need, such as desks and printers, to ensure as little money as possible is wasted in the transition.”
- Review your business subscriptions
“Carry out regular reviews of your business subscriptions to ensure that there aren’t any areas where you are regularly wasting money. For instance, if you’re able to, have a digital clear out and reduce the storage you’re paying for on storage space plans; this is a quick way to cut costs each month.”
- Use your marketing budget more efficiently
“Cutting your marketing costs doesn’t necessarily mean reducing your ROI. You could actually achieve a higher rate of sales by focusing on the marketing channels which work the best for you, rather than spending money managing further campaigns which are less effective.”
- Negotiate a better deal with your suppliers
“If you’ve been working with the same suppliers for years, you may not currently be paying the best prices for products or services. I would recommend renegotiating your contract as they may offer more competitive prices, which will save you money.”
“Otherwise, it’s always good to explore what the rest of the market has to offer; you may find that there are more options available from when you first started your business. At the end of the day, your business’ finances are more important than supplier loyalty.”
- Compare business insurance rates
“The same principle applies for business insurance. Be sure to compare policies so that you are confident that you’re getting the best rate possible. It will also help you in the long-run, should something unfortunate happen to your business.”