Here at Businessfunding.co.uk we’re all about business funding. However, whether you need funding or not it’s always worth also checking out your costs. We have been thinking about very easy ways for business owners to save money and thought we’d share these three ideas.
- Businesses should always ensure they are operating out of an appropriate office space. An ‘appropriate office space’ is dependent on the size of the business, the sector it operates in and the services it provides. For example, an international consulting company may need a much larger and more impressive office space than an SME that produces software. Many factors need to be considered when choosing an office space but above all it must be cost effective. Take a look around where you are now – is it really suitable? Could you cope with a smaller space, or perhaps one further out of town and therefore cheaper? Moving is a pain but costs are painful too!
- You should always negotiate any contract relating to a variable cost. The objective in business is to make as much sustainable profit as possible. As business owners know, it is often very difficult to increase revenue. Instead of concentrating all their efforts on this, businesses should make sure that they are maximizing their returns by minimizing their costs. For a Tech Startup this may mean buying any electrical components used in the manufacture of their product at the lowest possible price, or paying the lowest possible fee for any services that have been outsourced, e.g. accountancy services.
- Finally, a bit like your personal finances, take a look at your debt. Businesses can improve their ultimate likelihood of success by ensuring that they have no credit card bad credit or other outstanding interest bearing debts. Minimizing debts early on can pay dividends down the line and prevent your business getting stuck in a vicious circle!