4 Money Saving Tips for Businesses

Now more than ever, with the condition of the Global Economy, many businesses need to cut costs. However it is worth remembering “There are so many men who can figure costs, and so few who can measure values” – author unknown.This article is intended to highlight a few of the areas that business owners can review in order to minimise costs. Although this article is directed at UK based small businesses,the principles may be appropriate for business from all over the world.
Review finance costs
It is important to keep a watchful eye on the costs of financing your business. Although lending from banks has become more difficult over recent years, it is worth noting that many banks are still open to negotiation over their charges. It is often worthwhile speeking to a number of banks for comparative purposes. Consider all sources of funding, each have their advantages and disadvantages. Such as mortgages, bank loans, overdrafts, asset finance, factoring, issuing new shares and directors loans. This is a complex area and usually well worth seeking competent professional advice.
Make full use of technology
It can often be a false economy to scrimp on technology costs in order to save money. There is technology available to improve efficiency and make your business more competitive. The types of technology vary greatly from administrative and financial software to fully automated manufacturing processes. It is recommended to not discount investing in technology for your business without doing a cost V benefit study first. If your competitors adopt new technologies before you, you could find your business falling rapidly behind.
Engage experts where necessary
Often the fees that consultants and experts charge are seen as an unnecessary cost. This is not always true. It is better to pay a consultant a few hundred pounds than to spend hours and hours researching into a business area you know little about yourself. Experts that could save you money are those that could make your business run more efficiently, cut costs, raise sales, reduce your liabilities or those that can minimise risk. Think carefully and seek recommendations before engaging an expert.
Review overhead costs
It is good practise to thoroughly review your business costs on a cyclical basis. Just because your energy supplier was the cheapest 3 years ago, it does not necessarily mean that they are the cheapest now! Shop around, obtain written quotes and always negotiate hard. However remember – “Half the money I spend on advertising is wasted, and the trouble is I don’t know which half ” – Viscount Leverhulme 1851-1925: in D.Ogilvy Confessions Of An Advertising Man. The other factor to consider that the cheapest is not always the lowest cost in the long term. A poorer quality service or product could end up costing your business more.
The author does not guarantee the accuracy of any information provided in this article and recommends that you do not take any action, whatsoever, based on the information provided. By the fullest extent permitted by law, the author does not accept any responsibility for any actions you may or may not take based on information contained in this article. This article contains general information and is not a substitute for specific independent professional advice.