Best ways to save money as a business owner

In the current economic climate, it is vital that as a business owner, money is saved wherever possible; there have been too many companies that have failed due to poor control over the bank account or a lack of judgement when it comes to playing the market.

Profit is the most important (perhaps the only) factor to a business is to make a profit; if it is becoming a struggle to end the year in the black, then there are two key methods of turning that around: increase your turnover or cut down costs.

It can be argued that the latter is the easier of the two as the variables are in your control as a business owner. In order to rein in costs, there are several ways in achieve this; some are more extreme than others, but none are unattainable.

Limiting to necessary spending only

Those starting up a new business can find many ways to save on cash, as long as their tastes aren’t expensive. Getting an office is potentially the biggest expense for any company, but it is important to consider that you should only look to get an office that suits the needs of your company and nothing more. Splashing out for an office twice the size of what is required will bust the bank and will be wasted on your small young company. Equipment is a similar tale; don’t go straight to Apple for four-figure computers when all you really need are laptops that cost under £500.

Outsourcing instead of more hiring

A one-off cost will almost always be cheaper than hiring someone on a long-term wage to get a job done, especially if the job is in an area nobody on board is accustomed to. Take HR issues for example, small companies will rarely have an HR department and therefore when HR issues arise it is much better to look to companies who can quietly but efficiently take care of HR solutions.

Keep an eye on energy usage

These days many companies are being urged to cut down on energy usage, one to help the environment, but also to cut down on sky-rocketing costs. If the budget allows, look to install computerised thermostats in the office in order to control the room’s temperature and the amount of money going on heating and cooling.

Additional tips

• Use the telephone sparingly.
• Monitor office supplies.
• Barter for services.
• Shop around when looking for new equipment.
• Save money on mailing and shipping by planning bulk transactions.