It's Christmas time! But wait a minute - are you already bored of how much time you're spending with your family this festive season? Are you dreading multiple rounds of charades? Or are you just looking for any way to escape the fights and fallouts that come with Monopoly? Well, good news - if you’d like to take a breather from all the chaos then we've got the blog for you - with some money-saving tips for you to get stuck into for your small business...
New Year will soon be upon us after all, and outside the mountain of wrapping paper, board games, and carol singing, there’s a lot that small businesses need to be aware of when it comes to costs. Announced in the October 2024 budget and coming into effect in April 2025, we'll see a rise in both employer National Insurance contributions and the National Living Wage, meaning companies may need to adjust their business strategy, for example by increasing prices or holding off on employing new staff.
But are there any other ways you could cut back on costs? We've put together a few hints and tips to help you avoid the January blues and save a bit of cash - let's dive straight in:
1. Audit your expenses (like a detective)
Before you can save, you need to know where your money is actually going in the first place. Channel your inner Sherlock Holmes and scrutinise your outgoings. Look for subscriptions you forgot about, suppliers you’re overpaying, or expenses that just no longer add any value. Cancel, renegotiate, or streamline where you can!
Handy tip: Use tools like QuickBooks or Xero to track expenses automatically. These tools can highlight trends and red flags you might otherwise miss.
2. Do you really use this? If not, sell it!
While you're having a lil look at your expenses, also take note of what's around you. You're bound to have things in the office that you don't use anymore - I'm talking laptops, monitors, TVs, phones, printers, desks, chairs, all that kind of stuff. How much would you get if you sold them online? It's so easy to do now with all the marketplaces that are out there, and even if they don't fetch that much, at the very least you'll free up some space. And you know what they say, right: Tidy house, tidy mind!
While we're on the topic of online marketplaces, it's worth looking there first when you're buying too. No point spending too much money on brand new items when you can find something that's just as good secondhand - so think Facebook Marketplace, eBay, etc.
3. Get thrifty with your utilities
You don't need me to tell you that electricity, gas, and water bills can sneak up on you. We all know the feeling well, so it's worth taking a look at how much you could save by scrutinising these, too. Shop around for better deals and don't be afraid to pick up the phone to renegotiate. Switching to energy-efficient appliances can also help trim down your utility costs - it all helps!
And have you heard of the term ‘phantom energy’? It sounds a bit ominous, but it just means appliances that are consuming electricity even when they're not being used. Unplug them or turn them off at the wall instead of just leaving them on standby. While you're at it, encourage greener habits in the office - for example by gently reminding people to turn off lights in rooms they're not in. We all do it sometimes, but keeping an eye on that stuff will save you pennies that can quickly add up.
4. Embrace technology & outsource
Now onto how you can save a bit of precious time - because that can help with money-saving, too. Technology can help you out massively when it comes to efficiency - from project management tools like Trello and Asana to communication platforms like Slack. There’s a tech solution for just about every business need you can think of, so automate repetitive tasks like invoicing or email follow-ups, where you can.
Consider outsourcing some tasks - it might be tempting to try and do it all yourself to save money but wasting time on stuff you're just no good at will probably cost you more in the long run. Focus on whatever it is that isn’t your core competency and you'll free yourself up to concentrate on what you do best!
Review your insurance too - you don’t want to be paying for coverage you don’t need. Reassess your policy and shop around for competitive quotes - you might find a better deal or bundle options that reduce costs across the business.
5. Think local & collaborate
Support local suppliers and build relationships - this can lead to discounts, faster delivery, and reduced transportation costs. Plus, customers love a business that both champions its community and adopts sustainable practices.
You could also team up with complementary businesses to share resources or cross-promote each other’s services. For example, a coffee shop might partner with a local bakery to offer combined deals. Collaboration not only saves money, but again also boosts community goodwill. How great does that sound?
6. Just keep learning
Staying ahead in today’s economy requires adaptability. Invest in affordable online courses or free webinars to sharpen your business acumen and learn new cost-cutting strategies - you never know what you might find out and how you could save money in areas you'd never have thought of before.
Why not ask your team for their thoughts too? Sometimes the best ideas come from the people on the ground. Ask your colleagues and friends for suggestions on saving money or improving efficiency. Create an incentive for implemented ideas - a win-win for morale and your bottom line.
And it's always good to make sure you're looking after your team and letting them know how valued they are. Do this by showing opportunities for growth in your business, handing out some company awards, that kind of thing! There might be a small initial cost, but it's way better having to spend more money down the line on recruitment.
Save a few pounds this New Year
Saving money isn’t just about cutting costs, it’s about working smarter too. Every pound saved is a pound that can be reinvested into growing your business or weathering economic uncertainty. Remember, resilience is about adapting to the times - you’ve got this!
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