Everyone knows that running and especially starting a small business is a balancing act. You have to keep your prices at a competitively low level, but at the same time you have to operate at a profit and keep your cash flow healthy. One answer to the puzzle is to look at your costs. Little things can add up over your accounting year.
Staff
Good staff are essential and you want to keep them. You also want to maintain a positive attitude among your workforce, which means rewarding them fairly. But there are still ways to save money.
- When you have a vacancy, don’t assume you have to fill it straight away. Take a bit of time – you may find that other staff members can absorb some or all of the work, especially if they are keen to prove themselves.
- Experience is valuable, but it is also costly. When recruiting, consider taking on someone with less experience but with enthusiasm and the potential to learn. They will cost less and be grateful for the opportunity.
- Welcome requests to work part-time. It gives you the opportunity to review the job, and sometimes part-timers can achieve more per hour than full-timers.
Stuff
There are many ways to save money on your running costs.
- Use low-energy options where you can. Make sure that your controls are such that you only need to heat and light those areas that are being used. Keep staff looking for ways to save energy.
- Don’t shell out on expensive software if there is a free open source package available.
- Keep your postage bill down by never using a larger envelope than you need. Folding an A4 page in half saves on envelopes and postage.
- It is so easy to renew contracts without negotiating new terms, but since you last reviewed them the world has moved on. Don’t automatically renew contracts for insurance, stationery, power – haggle.
- Take advantage of trade shows to network and find out where the best deals are to be found.
Get What You Are Owed
There is money out there that is yours for the asking.
- Whatever you are buying, always ask for a discount.
- If you have a problem with bad debts, consider outsourcing the collection work. It will save you time and stress and might save you money.
- Follow up if you are due compensation for bad service. Find out from this page if you are due any flight compensation in extraordinary circumstances for delays and cancellations. Rail travel is also covered by a statutory compensation scheme for delays.
Probably needs a review – bad service doesn’t seem relevant enough. Happy to move the target url to something simpler so you don’t have to use the extraordinary circumstances page.
- Be clear about any incentive schemes that you might be able to access. Government bodies often have programmes available to support small businesses, sometimes in niche areas.
Looking After the Pennies
Your time is valuable, and so is that of your staff. You have important things on your mind, but if you and they are always on the look-out for small savings, these can quickly mount up into healthy profits.
Brian Flint often travels to Asia on business. He uses his time in the air to catch up on work and also unwinds by playing games and writing articles.
